Technical analysis by khmammed about Symbol BTC: Sell recommendation (2/7/2025)

If Bitcoin (BTC) is in a downtrend, the formation of an Elliott Wave (EW) pattern typically follows a five-wave impulse structure (1-2-3-4-5) in the direction of the trend. Here’s a breakdown of how it forms in a bearish market:Elliott Wave Formation in a DowntrendWave 1 (Initial Decline) – The first wave marks the beginning of the downtrend as sellers take control. This move is often sharp, driven by profit-taking or early signs of weakness.Wave 2 (Retracement) – A corrective wave where price recovers slightly but fails to make a new high. This is typically a Fibonacci retracement (38.2% to 61.8%) of Wave 1.Wave 3 (Strong Downtrend) – The most aggressive and extended wave, often fueled by strong selling pressure and panic. This wave typically extends 1.618x or more of Wave 1.Wave 4 (Consolidation/Pullback) – A corrective move where the price stabilizes, often forming a flag or wedge pattern. It usually retraces 23.6% to 38.2% of Wave 3.Wave 5 (Final Drop) – The last push down, often accompanied by decreasing volume and divergence in indicators (e.g., RSI or MACD). After this wave, a corrective ABC pattern may follow.Trading ConsiderationsShort Entry: Look for entries after Wave 2 retracement, aiming to catch Wave 3.Profit-Taking: Secure profits near the end of Wave 5, where reversal signals appear.Confirmation: Use Fibonacci levels, trendlines, and volume analysis to validate wave formations.Would you like a chart example or a more detailed trade setup for BTC’s Elliott Wave in a downtrend?