Why did the price of Bitcoin suddenly start to decline? Let's analyze the situation on a four-hour timeframe.
From a wave theory perspective, a significant correction wave [X] may have completed. Bulls spent a considerable amount of time forming this wave, and at the moment, it appears to be a completed triple zigzag.
Thus, we are currently witnessing a decline in the initial part of a new bearish trend. On a smaller wave level, there may be the development of an impulse wave 1-2-3-4-5. The first sub-wave 1 might have recently been completed, so in the coming days, the price may experience a slight upward movement in a minor correction 2.
The magnitude of correction 2 could be 61.8% of wave 1. Accordingly, reaching the level of 42,957.00, the market will likely reverse and fall more actively in the third wave.
In the current situation, you can consider opening a small long position to capitalize on the corrective rise or wait for the completion of wave 2 and initiate a short position at the beginning of wave 3.
Trading recommendations: Buy at 41,877.86, Take profit at 42,957.00.
