BTCUSD Elliott Wave Setup Shows Bearish Continuation Risk

The BTC/USD 1H chart illustrates a corrective Elliott Wave structure transitioning into a potential bearish impulse. After completing a prior five-wave decline, price appears to form an ABC correction, with wave (A) and (B) already established. The current structure resembles a contracting triangle labeled (A)-(B)-(C)-(D)-(E), typically occurring before a strong continuation move. The upper trendline acts as resistance, while the lower trendline provides temporary support. The rejection near wave (C) suggests weakening bullish momentum. If wave (E) completes near resistance without breakout strength, it often precedes a sharp downside move.

The projected path shows a breakdown into a new five-wave impulse lower, targeting significantly lower levels. This aligns with Elliott Wave theory, where triangles resolve in the direction of the previous trend—here, bearish.

Entry Points:

Short entry near wave (E) completion at resistance trendline
Conservative entry after confirmed breakdown below triangle support

Exit Points:

Take profit at previous swing low (wave 1 zone)
Extended target near projected wave (5) completion
Stop loss above wave (C) or triangle resistance

Risk management is essential, as invalidation occurs if price breaks strongly above resistance.