O Elliot Wave Theory has become very popular among Bitcoin analysts, given its effectiveness in helping to estimate where the cryptocurrency’s price will go next. Using this same theory, pseudonymous crypto analyst XForceGlobal estimated what could happen next for the price of Bitcoin.
Elliot Wave Theory Points to a Recovery
In the analysis posted On TradingView, XForceGlobal used the 5-wave method Elliot Wave Theory to predict further upside for the Bitcoin price. The chart maps out waves and subwaves, all of which have different implications for the Bitcoin price.
Related Reading
The crypto analyst points out that subwaves are currently in play, ranging from 1 to 5. So far, subwaves 1 and 2 have finished their execution, and with subwave 3, the analyst expects the price to continue rising as this wave forms.
Bitcoin price caught in Wave 3 is actually good for the price here, as the third wave is known to be bullish. It is also a long wave, which means that its effects will last longer than that of bearish wave 2, although shorter than wave 1.
However, instead of being just a sure shot for Bitcoin pricethe crypto analyst warns that it could end up being an ABC wave, which is inherently bearish for the price. In this case, the price of Bitcoin would rise and then fall.
Bitcoin Goals Going Forward
As mentioned above, the Bitcoin Price Getting Caught in Subwave 3 is bullish, meaning the price could go even higher from here. According to the crypto analyst’s chart, a 100% move is possible from here, putting the BTC price as high as $126,000.
However, the next wave, Subwave 4, is very bearish and the analyst predicts a major drop. They have placed the target at $39,728, which represents a decline of over 60% from the $126,976 price target of Subwave 3, which would mark the most notable drawdown in the price of Bitcoin since 2022.
Related Reading
The next wave, Subwave 5, is then expected to continue the bullish narrative, triggering a rise of over 200% from the lows of Subwave 4. It is expected to peak around $153,000, marking the completion of the five subwaves.
Despite the bullish scenarios outlined, the crypto analyst warns that “while the evidence strongly suggests that Bitcoin will reach higher levels before any significant correction, it is crucial to remain adaptable to evolving market conditions.”
They further added: “No theory can predict market movements with absolute certainty. By staying informed and considering multiple scenarios, investors can better navigate the complexities of the cryptocurrency market.”
Featured image created with Dall.E, chart from Tradingview.com