- Wave 4 correction looms after a bullish rally; traders should watch $1.13T support for potential re-entry opportunities.
- Strong Wave 3 momentum peaks at $1.99T, reflecting heightened investor confidence; Wave 5 may hit $2.64T before consolidation.
- Use Fibonacci levels and trendlines to navigate corrections; strategic exits during Wave 4 can optimize gains.
The market capitalization of all cryptocurrencies, except Bitcoin and Ethereum, came back from the lows in the middle of 2022. The formation of a smooth, rounded bottom shape in 2022 and 2023 was followed by a strong upward trend. According to Elliott Wave theory, this rise matches the pattern and is driven by positive, bullish energy. Experts anticipate a crucial Wave 4 correction soon, offering opportunities for traders to adjust strategies.
Wave Patterns Signal Key Market Dynamics
The market began its upward trajectory with Wave 1 in early 2024, hitting $1.13 trillion. Subsequently, Wave 2 retraced to the 0.618 Fibonacci level, near $670.63 billion, reflecting common retracement zones. Wave 3 followed with remarkable strength, peaking at $1.99 trillion and surpassing the 1.272 Fibonacci extension.
Source: Charting Guy
Wave 3’s robust momentum highlights increasing investor confidence. However, a Wave 4 correction is expected, which could bring sharp declines of up to 50%. Historical trends suggest Wave 4 retracements respect prior support levels, particularly near $1.13 trillion.
Final Bullish Rally Could Follow
Wave 5, projected to emerge after the correction, could lead to a rapid rally. Market analysts predict a peak near $2.64 trillion, aligned with the 1.618 Fibonacci extension. This overextension typically marks the conclusion of bullish phases before broader market consolidation.
Additionally, long-term resistance trendlines align with Wave 5’s projected peak, indicating potential challenges for further upward movement. Market participants should prepare for profit-taking and consolidation following this phase.
Strategic Outlook for Traders
Besides the wave structure, traders must monitor key support zones such as $670.63 billion and $1.13 trillion. These levels offer critical opportunities for re-entry after corrections. Moreover, Fibonacci retracement levels at 0.382, 0.618, and 0.786 provide valuable reference points for future trades. Investors are advised to remain vigilant during Wave 4. With the anticipated summer correction, many plan to exit partially, securing profits before re-entering near market lows.
The post Crypto Market Recovery Signals Wave 4 Correction Amid Bullish Trends appeared first on Cryptonewsland.
Earn more CFN tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://cryptoforum.news0
CFN Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed