Bitfarms Ltd. ($BITF) has increased by 400% since April 2025, completing a 5-wave pattern. The stock is currently undergoing a corrective pullback, creating a possible buying opportunity in the coming weeks.
According to Elliott Wave Theory, the stock has finished wave (5) within wave ((1)) and is now in a correction phase. The first leg down, wave (A), has finished, and we now see a rebound in wave (B). The next expected move is wave (C), which should target the range of $3.63 to $2.93.
The Blue Box area is marked as a potential reversal zone where buyers may return. Corrections typically consist of three swings (ABC), and wave (C) is likely to extend into the Blue Box. Traders should keep an eye on this area for signs of a reversal and the start of the next upward cycle.
Once wave ((2)) is complete in the Blue Box, $BITF is expected to begin its uptrend again with wave ((3)), possibly leading to new highs. This correction provides a good buying opportunity, according to Elliott Wave analysis. Traders should prioritize risk management while getting ready for the uptrend.
We have just wrapped up a major five-wave rally that started in April 2025, and now there is a market correction underway. This pullback aligns with trends in the broader crypto market, as Bitcoin has dropped to around $88,000 after losing its September highs. This situation signals a temporary shift from a bullish outlook to a more uncertain phase for crypto stocks.
In the next few weeks, the structure suggests further movement down toward the $3.63 to $2.93 range. Derivative traders might explore short-term bearish positions, like buying put options that expire in December 2025, to benefit from the expected drop. This allows engagement in the downside while limiting potential losses to the premium paid.
As the price approaches that target range, we should anticipate a significant reversal and shift our outlook from bearish to bullish. Historically, mining stocks experienced sharp pullbacks that often set the stage for big upward moves. Selling cash-secured puts with a strike price around $3.00 could be a smart way to earn income or acquire shares at a good price before the next rally.
Once the correction hits its bottom, the next major upward wave should begin, possibly leading the stock to new highs. This long-term positive outlook is supported by the recent report showing the company’s BTC holdings have exceeded 1,500 BTC, along with continued growth in its hash rate. Using long-dated call options, like those that expire in March 2026, could be an effective method to capitalize on the expected strong trend.
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