Liquidity has entered the crypto market.
If the below EWP projections give any sort of idea the likelihood of Bitcoin's next movements, then the recent rally to $68.5K opens the door for a potential drop down to as low as $54K-$60K before the bulls can regain control.
Figure 1. Bitcoin daily charts with Elliott Wave Count(s).
In Figure 1A you can see the bullish route for BTC, which is still not only possible but relatively probable. If this figure was indeed the case, then the Oct 28 low was likely Wave ii. While it meets the technical minimum requirements for a correction, the rally leaves something to be desired.
What does this mean? It's possible that BTC can still retreat further to $54K-$60K for a final intermediate down move (Figure 1B). This is a tricky structure, particularly since Oct 20 to the high at $63.5K, AKA an "irregular flat." The dead cat bounce is deceiving as it can exceed the initial top, misdirecting most to believe that the next rally has started only to see a further dip.
So, we're looking for a dip to $54K-$60K which would satisfy the original target zone for Wave ii.
Conversely, if BTC holds above $60K, ideally $62K, and can post a new ATH, then the bullish setup could be validated and the door would be oepend to $78K and then $90K.