The main reason for more downside pressure is that we can see risk-off sentiment in full swing, as stock markets are massively down, which can easily take the Crypto market lower, especially Crypto related stocks like Galaxy Digital Holdings. We have already shared it back in October and as you can see, it’s now turning sharply down after we noticed a corrective rally in wave B. If we see decisively broken 28 level and channel support line, then BTC could be easily headed much lower, maybe even back to June lows.
With current sharp rebound from the intraday lows, BTCUSD looks to have a completed wave »v« of A/1. So, we can now expect a three-wave a-b-c pullback in wave B/2 before a continuation lower within wave C/3. First resistance would be at the former wave »iv« swing high, while second one would be at the wave »i« swing low.
Bitcoin 4h Elliott Wave Analysis
ETHUSD is acting quite strong, but we are still tracking an A-B-C correction within wave (B)/(2) that can retest 4500-4600 resistance area before we will see more weakness within wave (C)/(3).