Elliot Wave Theory Predicts Bitcoin Bottom And Top, Here Are The Targets
22 Fevereiro 2024 - 4:30PM
NEWSBTC
Bitcoin looks to be stuck in a consolidation zone between $50,000
and $52,000, with neither the bulls nor the bears succeeding in
completely taking control of the trend. This performance has
sparked a number of speculations on whether the BTC price has
finally found a local top. One of those who have speculated on the
price direction is crypto analyst Alan Santana, who has used the
Elliot Wave Theory to predict where the price of the cryptocurrency
might be headed next. Elliot Wave Points To Correction To $31,800
In the analysis shared by Alan Santana on TradingView, the Elliot
Wave theory could point out the direction that the Bitcoin price
could be headed next. The theory, which consists of five waves, has
so far completed three waves, with the fourth wave expected to
happen soon. Related Reading: Billionaire Tim Draper Bullish On
Bitcoin As It Will Surpass Traditional Currencies, Here’s Why Given
that the third wave is very bullish and the price has risen so
fast, the fourth wave is expected to be more bearish. As Santana
explains, this fourth wave points toward an upcoming correction.
They also reveal that their analysis included Elliot’s Law of
Alternation, and applying it to this scenario, the fourth wave is
bearish, but would not go as low as the second wave. Source:
TradingView.com Once this fourth wave moves into action, the
Bitcoin price is expected to see a sharp correction. At the low end
of this correction, though, is the $31,800 level, the analyst
believes. So, in this scenario, there will be a return to the
$20,000s before Bitcoin resumes its next leg up. “This wave four of
a higher degree cannot enter the territory of wave two, which puts
the lowest price possible for the upcoming correction at $31,805
based on Elliot Wave Theory,” Santana said. He further added that:
“Just as wave three would lead to a correction (wave four), wave
four invariable leads to another impulse; the final and fifth wave
of the higher degree.” Bitcoin Top At $138,000 Not only does the
Elliot Wave theory points toward a possible bottom, it also gives
an idea for where the Bitcoin top might lie in the fifth wave. The
crypto analyst uses one of the two Wave Principle methods to
forecast this price, which takes into account the peak of the third
wave and then uses that to give the peak of the fifth wave. Related
Reading: Bitcoin Holds Above $50,000 Despite Nasty Drop, Crypto
Expert Says Local Top Not In So far, the local top of this third
wave looks to be $52,985, where Bitcoin peaked earlier this week.
Since the Wave Principle says that the peak of Wave 5 would be
three times higher than that of Wave 3, the analyst multiples
$59,985 by 3, which gives a cycle top of $138,714. As for when this
peak will roll around, Santana explains that the whole thing could
play out by 2025, which is when the peak would take place. “So the
potential for the final impulse or fifth wave based on the Elliot
Wave Theory system, amounts to $138,714. This can happen sometime
in 2025,” the analyst stated. BTC price at $51,700 | Source: BTCUSD
on Tradingview.com Featured image from Investopedia, chart from
Tradingview.com
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