Have you heard about Elliott Waves? It's a way to understand the movements of prices and anticipate shifts in trends. A “Wave 5” for the ages? According to the Elliott Wave Theory, markets move in five waves. The first wave is small but noticeable, followed by a drop in the second wave. The third wave is the longest and strongest, followed by a pull-back fourth wave and ending with a fifth wave that pushes the price higher but does not give a return as large as wave three. Investopedia has an example: We can see this pattern playing out on the monthly chart from 2022 to today. Let’s not get ahead of ourselves Don’t stress! We don’t know how high wave 5 will go. This is a very long-term chart so it could take 2–3 more months to figure this out. For all we know, December’s high could have completed wave 5. Once we see a pullback of any great size, we can talk about a “second chance” relief rally or complacency bounce before a larger, cyclical correction (like a bear market). At that point, we will reach the A-B-C portion of the image from Investopedia. For now, we’ll just have to see how it goes. Did you like this analysis? It’s a snippet from my the January 14, 2025, market update of my newsletter, Crypto is Easy. You can watch a video of that snippet on YouTube. https://youtu.be/Z8EARP9pyjw?embedable=true Mark Helfman publishes the Crypto is Easy newsletter. He is also the author of three books and a top Bitcoin writer on Medium and Hacker Noon. Learn more about him in his bio and connect with him on Tealfeed. Have you heard about Elliott Waves? It's a way to understand the movements of prices and anticipate shifts in trends. A “Wave 5” for the ages? According to the Elliott Wave Theory, markets move in five waves. The first wave is small but noticeable, followed by a drop in the second wave. The third wave is the longest and strongest, followed by a pull-back fourth wave and ending with a fifth wave that pushes the price higher but does not give a return as large as wave three. Investopedia has an example: We can see this pattern playing out on the monthly chart from 2022 to today. Let’s not get ahead of ourselves Don’t stress! We don’t know how high wave 5 will go. This is a very long-term chart so it could take 2–3 more months to figure this out. For all we know, December’s high could have completed wave 5. Once we see a pullback of any great size, we can talk about a “second chance” relief rally or complacency bounce before a larger, cyclical correction (like a bear market). At that point, we will reach the A-B-C portion of the image from Investopedia. For now, we’ll just have to see how it goes. Did you like this analysis? It’s a snippet from my the January 14, 2025, market update of my newsletter, Crypto is Easy . the January 14, 2025, market update the January 14, 2025, market update Crypto is Easy You can watch a video of that snippet on YouTube . YouTube https://youtu.be/Z8EARP9pyjw?embedable=true https://youtu.be/Z8EARP9pyjw?embedable=true Mark Helfman publishes the Crypto is Easy newsletter. He is also the author of three books and a top Bitcoin writer on Medium and Hacker Noon . Learn more about him in his bio and connect with him on Tealfeed . Crypto is Easy Crypto is Easy Crypto is Easy Medium Medium Medium Hacker Noon Hacker Noon Hacker Noon bio bio Tealfeed Tealfeed