Bitcoin /has completed a strong impulsive leg, with the third wave pushing sharply higher on strong volume. After this extension, the market is now showing early signs of exhaustion.
📈 Wave Count
Wave (3) peaked with a strong vertical move.
Price is now likely transitioning into wave (4), a corrective phase.
If confirmed, a retracement toward lower support zones is expected.
🔻 Key Levels to Watch
First correction target: 111,200 – 110,800 zone (supply turned support).
Deeper correction target: around 109,800.
These levels align with prior consolidation and Fibonacci retracements.
💡 Short Setup
Traders can consider short entries if bearish confirmation appears.
Watch for signals such as:
Rejection wicks at the highs
Engulfing bearish candles
Momentum breakdown on lower timeframes
Stop-loss: above recent peak (~112,200).
Profit targets: 111,200 first, then 109,800 if pressure extends.
⚡ Alternative Scenario
If buyers regain momentum, BTC could push for a final wave (5) extension before any larger correction. However, probability currently favors a pullback.
✅ Conclusion
BTC/USDT is entering a potential corrective stage after completing its third impulsive wave.
The 111,200 – 110,800 zone is the first area to test, while 109,800 stands as a deeper downside target.
Short setups are valid with confirmation, but strict risk management is essential. 📊