The Elliott Wave theory has become very popular among bitcoin analysts, given its effectiveness in helping to estimate where the cryptocurrency’s price will head. Using this same theory, pseudonymous cryptocurrency analyst XForceGlobal has estimated what could happen next with the bitcoin price.
Elliott Wave Theory Points to a Recovery
In the analysis bitcoin-s-Cycle-Using-the-Elliott-Wave-Theory-Part-2/”>aware On TradingView, XForceGlobal used the 5-wave Elliott Wave Theory to predict further bitcoin price growth. The chart shows the waves and sub-waves, all of which have various implications for the bitcoin price.
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The cryptocurrency analyst notes that sub-waves are currently in play, ranging from 1 to 5. So far, sub-waves 1 and 2 have completed their run, and with sub-wave 3, the analyst expects the price to continue to rise as this wave forms.
The fact that bitcoin price has been caught in wave 3 is actually good for the price going forward, given that wave 3 is known to be bullish. It is also a long wave, meaning its effects will last longer than those of the bearish wave 2, although shorter than those of wave 1.
However, rather than just being a straight wave for the bitcoin price, the cryptocurrency analyst warns that it could end up being an ABC wave, which is inherently bearish for the price. In this case, the bitcoin price would rise and then fall.
bitcoin's Goals for the Future
As mentioned above, the fact that bitcoin price is stuck in sub-wave 3 is bullish, meaning that the price could rise even further from here. According to the cryptocurrency analyst’s chart, a 100% move is possible from here, which would take the btc price to $126,000.
However, the next wave, sub-wave 4, is very bearish and the analyst predicts a significant drop. They set the target at $39,728, which is more than a 60% drop from the target price of $126,976 from sub-wave 3, which would mark the most notable drop in bitcoin price since 2022.
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The next wave, Subwave 5, is expected to continue the bullish narrative, triggering a surge of over 200% from the lows of subwave 4. It is expected to peak at around $153,000, marking the completion of all five subwaves.
Despite the bullish scenarios outlined, the cryptocurrency analyst warns that “while evidence strongly suggests that bitcoin will reach higher levels before any significant correction, it is crucial to remain adaptable as market conditions evolve.”
They 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
