Technical analysis by mukit1 about Symbol BTC on 8/31/2025

BTC price breaking below $112k is a big deal. It made a lower low similar to June, but from EW perspective, it marked the completion of a significant top. It also confirmed that the inverse head and shoulder pattern has failed. Now, there are several pathways opened up where price can either take a nosedive or chop around a bit or go back up with even greater intensity and there is no way of knowing which one, until it happens. 1. Blue path: this could be an extension of minuette degree wave 5. Instead of completing subminuette 5 waves move, maybe it is only the wave 1 of 5. If that is the case, then this correction should be winding down very soon. This move down in price during August looks to be a three waves move, most likely a wxy. It has tapped the golden zone from June low to August high. For blue path to be true, we should see $112k regained early next week and ATH reached before end of September. If this plays out, then we will see the parabola that everyone is waiting for! 2. Green path: this assumes minute degree wave 3 has completed and wave 4 is on going. This would be the most painful scenario, since the chop will be quite brutal and shakeout a lot of people on both sides. specially if price action takes a triangle shape, then it can go on for a while. The move down so far is in 3 waves and the first wave being in another 3 waves, it is most probable that the overall move will not be an impulse. It might turn out to be a diagonal to start wave 1 to the downside, but that will be an alternate count of an alternate count. For now, this scenario will assume a slow ride down to $90-$70k, hopefully support at the trendline in the next 2-3 months. 3. Red path: most bearish. Would assume minute degree wave 5 is complete and has marked the completion of Minor wave 1. Minor wave 2 can travel a lot. To reach the golden zone could take price to $32k. The confirmation would be the trend line break in the $85k region. Depending on how fast the price drops, it may last for the next 6-8 months with steep bounces along the way. Right now, exiting is the most difficult decision to make. I would be extremely careful to put any leverage on either side of the trade. I have taken profit but not going to either exit or put more capital at this moment.