The wave counting of the 4-hour chart of bitcoin is absolutely clear on a higher scale. After a strong upward trend, we saw a classic three-wave corrective structure a-b-c. Thus, at this time, the question is whether the fall in bitcoin will end with these three waves, or whether the decline will continue within the framework of a more complex wave structure. It is noteworthy that the quotes of the crypto instrument did not reach the level of 100.0% on the lower Fibonacci grid yesterday. An unsuccessful attempt to break through this level did not happen, as well as a successful one. Nevertheless, bitcoin quotes have already moved $10,000 from the lows of the previous day, which indicates the possible completion of the downward trend. However, this does not mean that the cryptocurrency will now begin to build a new bullish section with targets located above the high of wave 5 in 5. It is quite possible that now bitcoin will consolidate and build various corrective wave structures for some time. Let me also remind you that, a lot will depend on market sentiment and news background. Many analysts associate the fall of bitcoin in the last month with the news background. Therefore, if it continues to remain negative to the same extent, it will be difficult to count on a serious increase.

So far, the news background for bitcoin remains negative. All the news that came in the last month, one way or another, contributed to the fall in quotes. But the mood of the markets is different now. After bitcoin fell more than 50% from its April highs, many institutional investors and funds started buying cryptocurrency again, as current bitcoin price levels are very attractive. Many economists still believe that bitcoin will grow and conquer the world. And local falls - no one is immune from them. Thus, even in the last 24 hours, we can say that large investors have already started buying coins of the main cryptocurrency, otherwise, such a strong and powerful recovery would not have followed. However, one should not rely only on foundations and institutions. They, of course, have much more opportunities than small investors, but there are more small investors in the market. Further actions of the authorities will be of no small importance. Let me remind you that recently the Chinese regulatory authorities imposed a ban on financial companies from providing any services related to cryptocurrencies. It was also reported that the US Treasury Department is going to revise some of the rules for regulating the cryptocurrency market and its subjects. In addition, you should always expect news from Elon Musk, who tends to comment on the main cryptocurrency, provoking an increase in volatility.

Based on the analysis, I believe that the three-wave downward wave structure can be completed. However, the movements of recent days have been so fast and strong that it will take some time for the market to clear up. Thus, now I recommend not to rush with new deals. It is better to wait until the situation calms down and it will be possible to understand how strong wave c will turn out to be and whether it is definitely completed.