Will it go lower than 3000? Is it will be a bottom of Bitcoin Bubble pop? What price should you start look into BTC to get it cheap?
I want to bring to your attention, firstly, before we actually take a look at the bitcoin price itself. What I want to bring to your attention is what's happening here on this chart, and you may remember about some weeks ago at the beginning of November, I said, look, pay attention to this pulse signal that's happening here on this chart, these red dots, because when these red dots turned to blue dots, in other words, when the policy eventually fires as it did on the 14th of January, you can see that policy eventually fired. You can see what happened to bitcoin. Bitcoin broke through that supports and then dropped significantly lower. In fact, bitcoin dropped by almost 50 percent, almost 3000 points from these levels. So as I explained before my previous video, that is why we never fight the momentum of the pulse. So when the momentum you can see as negative and it's momentum is increasing lower and lower.
We never fight this. We don't stand in front of it because that's like standing in front of a freight train. But notice, something that I mentioned in a couple of videos ago has now happened. You can see what happened here. I mentioned a very recently that I was expecting the momentum of this pulse signal to eventually come to an end and you can see that it has now come to an end. You can see the momentum has now dissipated. Notice it's going now the other way as you can see there. So the momentum behind the pulse signal now has officially dissipated, is now faded. So this pulse signal has now ended when the momentum on a pulse signal on this timeframe comes to an end. What you usually see is either some sideways action or a counter trend move, and that's what's been happening here so far.
You're seeing a sort of a counter trend, small counter trend move or any of that of a sideways action here on Bitcoin at present. Now of course, the big question you're probably wondering is, and the big question many folks out there are asking is, is this bounce potentially a wave for? Okay, so this is wave three. Is this our way for? Well, let me just backup a little bit and let me just give you some context. Firstly, what we're talking about, what does it mean not familiar is elliot wave theory, and this is something I've talked about recently and the coordinator Elliot Wave Theory markets tend to trend and five waves and I said some time ago that were very likely in the second half of this wave three, and in fact, as you can see here on my charts, this is the chart that shows our lt Elliott waves indicator that I've talked to you about in a recent webinar and our own lte Elliott waves indicator is indicating we're in a very likely wave three situation here.
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And here's something we know about wave threes, which is that way. Three's usually have very shallow pullbacks. In fact, one of the characteristics of a wave three is that they have very shallow, very small pullbacks like you see over here. Okay? So you just pull backs over here, very shallow bounces, very small pullbacks. And to me this pullback here on bitcoin actually is rather mediocre. It's not really significant. Uh, the way I see it, for example, take a look at this chart of oil. Let me show you this chart of oil. Now, as you probably know, oil prices have been dropping quite significantly and as you see here on our chart, again showing our lte elliott waves indicator, you can see that we're in a very likely wave three situation. You ever been in a wave three. Now for some time, and again, notice when you're in a wave three very shallow pullbacks notice very mediocre pullbacks.
Look at these bounces. These bounces are very shallow, very small, as you can see here. Look at this over here, very shallow, very small balances. And again, also in a wave three, you tend to see the price, ignore oversold conditions. So that is why Elliot wave theory can be very useful. It gives you an expectation of how you're dealing with the price and the patterns on the charts. So we just go back to this chart off Bitcoin, first of all, are way into likely wave three here. Is this a wave three? I believe so, yes. As I just explained a few moments ago, I believe this is a wave three situation, but is this bouncier, does this bounce count as a way for. I think it's too early to call that, so at the present I'm going to remain neutral on that. I don't think there's any indication at present that this is a way for.
It is too early to call. All right. It's too early to say. This is a way for. We'll have to wait and see how this market plays out in the next few days. As we go through the rest of the week. It is possible that bitcoin might see further follow through higher, perhaps towards some resistance levels, but at the present it's still not very clear. All right. Bottom line is this though. Here's the bottom line. I'm still expecting bitcoin to take outs. These previous lows that were formed here. I'm still looking for bitcoin eventually to head lower head south and take out these previous lows that before. I'm just near 3,500. Now. When is that likely to happen? Nobody knows. It could take until the end of December, potentially starting January or it might actually happen much sooner than that, but the likely scenario is that eventually we're going to take out these previous lows near 3,500 and when we do the next likely downside targets below 3,500.