Wave 2 has developed into an expanding flat formation, with a retracement extending to the 0.618 level, well within the typical range for a deep corrective Wave 2. Such price action reflects a market still lacking strong conviction, as participants remain hesitant to fully commit ahead of a potential impulsive advance.
Going forward, the key focus is whether this consolidation phase continues to evolve into a more complex corrective structure, or if a decisive catalyst emerges to trigger momentum and initiate Wave 3.
Going forward, the key focus is whether this consolidation phase continues to evolve into a more complex corrective structure, or if a decisive catalyst emerges to trigger momentum and initiate Wave 3.
Following Trump’s live remarks, price saw a sharp selloff, however the 0.618 level appears to be holding for now. The price structure is becoming clearer, resembling a leading diagonal triangle typically observed in wave 1 or wave A and often accompanied by deep retracements. The current correction remains capped around the 65K level, a break below this threshold would invalidate the current wave count.
On the daily chart, we observe the price action prior to the TL1 breakout, it clearly shows non-overlapping bars, indicative of an impulsive wave.
In contrast, the price movement leading up to the TL2 breakout appears corrective in nature. Corrective waves tend to align more closely with a normal distribution and exhibit mean reversion characteristics. We will have to see what unfolds next, whether Bitcoin regains strength or moves otherwise.
In contrast, the price movement leading up to the TL2 breakout appears corrective in nature. Corrective waves tend to align more closely with a normal distribution and exhibit mean reversion characteristics. We will have to see what unfolds next, whether Bitcoin regains strength or moves otherwise.
