More Pain Ahead? Bitcoin Trendline Breach Sparks Talk Of Corrective Wave In Play

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Bitcoin’s weekly chart is at a pivotal point, with price action hovering around key structural levels. Traders are now questioning whether the current move marks the start of a deeper correctionor just a healthy consolidation before the next leg up. Elliott Wave Signals Align With Developing Correction

Elliott Waves Academy, in its latestanalysis tracking Bitcoin’s expected wave path on the weekly timeframe, has raised a key question: has the corrective wave begun? The recent market structure indicates that the bullish leg has likely completed, and the price may now be transitioning into a corrective phase. A critical support level of the prior upward wavehas been broken, hinting at a potential wave reversal in progress. Related Reading Bitcoin On-Chain Activity Slumps Below 365-Day Average – Is Momentum Losing Steam? 4 days ago

The evidence for this transition grows stronger when observing the break below the lower boundary of the diagonal pattern and the final price channel. Both of these structures previously acted as strong supportsduring Bitcoin’s impulsive climb, and their breakdown now suggests that market control is slowly shifting from buyers to sellers.  Source: Chart from Elliot Wave Academy on X

Currently, Bitcoin is trading beneath the lower boundary of the price channel, which has flipped into a key resistance zone. As long as the price remains below this zone, bearish sentiment could persist, keeping the market in a cautious state.

Despite the weakness, there are signs that the downward sub-wave might be nearing completion. The structure suggests that a short-term upward corrective wave could emerge as the market attempts to stabilize and regain footing.  Expected Outlooks

Sharing his expectations, Elliott Waves Academy noted that Bitcoin may continue to consolidate around its current levels as bullsattempt to defend their positions. Such a phase of sideways movement often reflects a period of indecision in the market, where both buyers and sellers are waiting for confirmation before committing to their next major moves.  Related Reading Bitcoin Structure Points To Healthy Correction Before Next Wave Toward $150,000 1 week ago

However, the Academy cautioned that if signs of weakness begin to emerge near the current resistance zone, the market could face a potential reversal. This shift could trigger renewed bearish pressure, pushing Bitcoin into a deeper corrective leg. 

According to the analysis, the correction could extend toward the 50%–61.8% Fibonacci retracement levelsof the previous upward wave. These Fibonacci zones often serve as key areas of support during corrective movements, and a decline into these ranges could provide a more stable foundation for a future bullish reversal. 

Ultimately, monitoring price behavior around these crucial levels in the following days will be essential. Whether the market holds firm in consolidation or slips into a deeper retracement, the upcoming movements in these zones could set the tone for the next phase of Bitcoin’s long-term wave cycle. BTC trading at $106,752 on the 1D chart | Source: BTCUSDT on Tradingview.com Featured image from Pixabay, chart from Tradingview.com