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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. In particular, this bullish price target could go unnoticed as one of the many positive predictions that have surrounded the price of bitcoin in recent times. However, Xanrox's prediction is intriguing as it also comes with a bearish outlook once the price target is met.
To support his forecast, Xanrox depended 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 trip towards the $130,000 target, but also a sharp pullback to $60,000.
bitcoin price roadmap to $130,000
leading to bitcoin-130k-by-January-then-crash-to-60k/”>TradingView To share his views, crypto analyst Xanrox highlighted that bitcoin price is now on the way to development Elliot's fifth 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 sub-waves, labeled 1 to 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. consolidation that provide a pause before the next leg of the trend.
According to Xanrox analysis, bitcoin officially started Wave 5 after hitting a correction low of $49,000 in August. This marked the end of Wave 4, which had acted as a period of consolidation after the dramatic rally seen during Wave 3, with the price of bitcoin reaching a new all-time high. Now, with the final push wave underway, attention has shifted to how high bitcoin could rise.
To predict the potential peak of Wave 5, Xanrox employed Fibonacci extensions. Interestingly, when the Fibonacci extension is applied from the Wave 4 low, the 0.618 Fib extension aligns perfectly with a major trend line that has marked the Wave 1 and Wave 3 peaks.
As such, this suggests that the 0.618 Fib extension could play a pivotal 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% upside from current levels.
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What's next after $130,000?
The outlook for Xanrox bitcoin-etfs-attract-555-million-in-fresh-inflows/” rel=”nofollow”>it doesn't just end with a bull target price. The analyst also warned and highlighted the possibility of a strong reversal after bitcoin reaches its fifth wave peak. Based on the patterns, he noted that previous bitcoin waves have seen significant corrections of between 70% and 80% once the impulse wave cycle concludes.
For this reason, Xanrox predicted that bitcoin could crash quickly to $60,000 after reaching $130,000, likely by January 2025.
Featured image created with Dall.E, chart from Tradingview.com
