YouTube cryptocurrency analyst More Crypto Online highlights that the current five-wave trend on the Bitcoin charts could open the door to an even bigger trend.
In a January 12 video, the analyst suggested that if small support breaks on the Bitcoin (BTC) daily chart, the market could expect a fourth wave and trigger a larger fifth wave, assuming the market doesn’t fall below $35,000.
If so, the next 4 waves will be significantly larger than the previous month’s 4 waves, producing a bullish result.
More Crypto Online suggests there is nothing bearish on the charts unless the market breaks $20,000.
“I would view any selloff as a gift,” the analyst said. “I’m having a hard time seeing Bitcoin fall to that level anyway. I am watching the wave 4 scenario for the first time. Once five waves are completed, the market should expect a sharp decline.”
Looking at the hourly chart, the rally after the September 11th low was completed on January 11th, allowing a major high to form. However, the analyst confirmed that this cannot be confirmed until the market sees a sustained decline below $42,550.
The analyst notes a few red candles on the daily chart, but this is not surprising as highlighting selling is common in cryptocurrencies and does not signal a larger downtrend.
More Crypto Online also predicts something will change, predicting that the ETH/BTC chart bottomed last week. More Crypto Online suggests that market changes triggering altcoin season could result in funds flowing from BTC to Ethereum (ETH) and many other altcoins.