Bitcoin had more than a 10% correction this morning, from ATH's at $34.45K down to $28.4K. There was support here at a Fibonacci level, which is actually the upper anchor of one of our nested Fibonacci's. The bubble has not burst yet, this is just a healthy correction from such a prolific rally. We are likely at the end of the corrective phase of the 5-3 Elliott Wave so anticipate some momentum soon. Seasoned crypto traders will realize this is a typical pullback for Bitcoin, n00bs may be rearing from buying at highs. Consider this a lesson to wait for dips if you fomo'd in at ATH's.
Fear not, because we are bound to have corrections like this, and it is very reminiscent of 2017. Our conservative price target for Bitcoin in 2021 is $50K by Q2. After that, we will revisit fundamentals such as institutional interest, updates on regulation, geopolitical developments, dollar strength and more, as well as technical analysis.
Ethereum blasted past $1000, which is a very substantial technical and psychological level. At that point, it then ascended further to $1160 or so (right before our Fibonacci extension level) before finally petering out and retracing hard. These types of retracements are very common in crypto especially when cryptos are in bull mode. It did seem to find support at $860 and has since stabilized. This is a healthy price for Ethereum and a good buying opportunity. We may be in the corrective phase of a 5-3 Elliott Wave, so anticipate another bull push soon.
Litecoin had a correction, though nowhere near to the extent of Bitcoin and Ethereum. Litecoin has been chugging along recently, and out of the limelight stolen by Bitcoin and more recently, Ethereum. This is a strong contender, and a personal favorite. We view $140 as a buying opportunity. It has strong support here, but if this fails, $135 and $132 should provide further support. We will see another bull push soon.
