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Navigating Bitcoin’s Elliott Wave: Strategic Insights for Traders Amidst Corrective Patterns

March 22, 2025
Smart Money

BTC/USD Elliott Wave Technical Overview and Trading Strategy

Overview of Elliott Wave Structure

The Bitcoin to U.S. Dollar (BTC/USD) pair is currently situated within a corrective Elliott Wave pattern. According to recent analyses, Wave A has been completed, and the market appears to be entering Wave B, which is characterized as a corrective and short-term bounce before progressing into Wave C. This structure forms part of a larger corrective move labeled Wave ((II)).

Traders and market analysts are closely observing the potential movements and key price levels to better strategize their trading decisions.

Current Market Dynamics

Following the completion of Wave A, Bitcoin is showing signs of modest recovery. The Elliott Wave model suggests that the market is now unfolding Wave B. Specifically, the price is moving through sub-wave a of this wave, with expectations that Wave b of (b) will continue its upward trajectory temporarily.

Key Resistance Level

A pivotal resistance level has been established at $90,792. This price point is critical for traders to monitor, as failure to breach this resistance could indicate a subsequent downward momentum in what’s termed Wave c of (b). Additionally, the end of the prior downtrend was marked by Wave ((5)), which concluded near $76,703. ## Trading Strategies for BTC/USD

Short-Term Trading Approach

For short-term traders focusing on swing trades, testing the $90,792 resistance is crucial. Should price adjust to this resistance level and exhibit selling pressure, it may signal a favorable opportunity to enter short positions in alignment with the anticipated movement of Wave (c).

Risk Management Considerations

Traders should maintain strict risk management protocols. Notably, if BTC/USD were to break above $111,954, the current downtrend scenario would be invalidated, necessitating a reassessment of trading positions and strategies.

Conclusion

As BTC/USD navigates through this corrective Elliott Wave phase, traders must remain vigilant, particularly around key price levels such as $90,792 and $111,954. While the current technical analysis presents opportunities for short-term positioning, it is essential to recognize the inherent risks involved in trading cryptocurrencies.

Disclaimer

Please note that trading and investments carry risks, and losses may occur. Historical performance is not indicative of future results. Potential investors should conduct their own due diligence and consider consulting financial advisors regarding their trading strategies to align with personal financial situations and objectives.

For ongoing insight, traders can refer to analyses from TradingLounge, provided by Kittiampon Somboonsod, CEWA, who utilizes a variety of technical analysis tools and fundamental assessments aimed at minimizing potential losses.