Elliott waves describe price moves as a fixed sequence: five waves run in the direction of the larger trend, and three waves correct it. The theory thus provides a grid into which you can sort any chart, including that of Bitcoin. Whether this grid predicts prices is still disputed today, and that is exactly where this guide comes in.
We traced the theory on real Bitcoin prices from March 2020 to November 2022. The result: one count meets all three basic rules in hindsight. A second count meets them as well, but reaches the opposite conclusion in April 2021. Anyone using Elliott waves in crypto trading therefore needs above all a tool that documents counts cleanly. Our comparison shows which crypto analytics platforms offer wave counting, Fibonacci tools and price alerts.
Elliott wave theory: five impulse waves and three corrective waves
Elliott wave theory distinguishes two building blocks. An impulse wave is a move in the direction of the trend made up of five sub-waves, numbered wave 1 to wave 5. Waves 1, 3 and 5 drive t...
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