According to a technical analysis by analyst Xanrox, the price of Bitcoin is on track to reach the $130,000 mark in the coming months. Notably, this bullish price target may go unnoticed as one of the many positive predictions that have surrounded the price of Bitcoin in recent times. However, the Xanrox forecast is intriguing as it also presents a bearish outlook after meeting the price target.
To support its prediction, Xanrox relying on a combination of Fibonacci extensions and Elliott impulse waves, two of the most popular analysis tools. Together, these tools allowed Xanrox to not only identify a journey to the $130,000 target, but also a strong pullback to $60,000,
Bitcoin Price Roadmap to $130,000
Taking to Trading View to share his views, crypto analyst Xanrox highlighted that the price of Bitcoin is now on the way to play the fifth Elliot impulse wave, having already completed the fourth impulse wave in August.
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Impulse waves, of which there are five in total, are part of the two main types of waves in Elliot Wave theory, the others being corrective waves. An impulse wave is a strong, directional movement in the market that goes in the direction of the general trend. These waves are divided into five subwaves, labeled 1 through 5. The odd-numbered waves (1, 3, and 5) represent the driving forces behind the trend, while the even-numbered waves (2 and 4) are periods of consolidation that provide a break before the next leg of the trend.
According to Xanrox analysis, Bitcoin has officially started Wave 5 after reaching a correction low of $49,000 in August. This marked the end of Wave 4, which acted as a period of consolidation following the dramatic recovery seen during Wave 3, with the price of Bitcoin reaching a new all-time high. Now, with the final momentum wave underway, the focus has shifted to how high Bitcoin can go.
To predict the potential peak of Wave 5, Xanrox employed Fibonacci extensions. Interestingly, when the Fibonacci extension is applied from the low of Wave 4, the .618 Fib extension aligns perfectly with a main trendline that marked the peaks of Wave 1 and Wave 3.
As such, this suggests that the .618 Fib extension could play a key role in the next phase of Bitcoin price action. At the point of this intersection lies a price target of $130,000, which represents a significant 100% increase from current levels.
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What comes after $130,000?
Xanrox Outlook doesn’t just end with a high price target. The analyst also warned and highlighted the possibility of a sharp reversal after Bitcoin reaches the peak of the fifth wave. Based on the patterns, he observed that previous Bitcoin waves have seen significant corrections between 70% and 80% when the impulse wave cycle ends.
For this reason, Xanrox predicted that Bitcoin can fail quickly to $60,000 after reaching $130,000, likely in January 2025.
Featured image created with Dall.E, chart from Tradingview.com