The Elliot Wave theory has become very popular among Bitcoin analysts, given its effectiveness in helping to estimate where the cryptocurrency’s price is headed. Using the same theory, pseudonymous crypto analyst XForceGlobal has estimated what could happen next for the Bitcoin price.
Elliot Wave Theory points to recovery
In the analysis Posted on TradingView, XForceGlobal used the 5-wave Elliot Wave theory to predict a further rise in the Bitcoin price. The chart maps the waves and sub-waves, all of which have different implications for the Bitcoin price.
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The crypto analyst points out that the subwaves are currently in play, ranging from 1-5. So far, subwaves 1 and 2 have ended their runs, and with subwave 3, the analyst expects the price to continue rising as this wave forms.
The Bitcoin price captured in Wave 3 is actually good for the price from here on out as the third wave is known to be bullish. It is also a long wave, meaning its effects will last longer than those of bearish wave 2, although shorter than wave 1.
However, instead of just being an immediate move for the Bitcoin price, the crypto 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 targets are moving forward
As mentioned above, the Bitcoin price captured in subwave 3 is bullish, meaning the price could rise further from here. According to the crypto analyst’s chart, a 100% move from this point is possible, which could take the BTC price to $126,000.
However, the next wave, Subwave 4, is very bearish and the analyst predicts a major crash. They estimate the target as low as $39,728, which is a drop of more than 60% from the $126,976 price target from subwave 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 story and cause an increase of over 200% from the lows of subwave 4. It is expected to peak around $153,000, marking the completion of the marks five subwaves.
Despite the bullish scenarios charted, the crypto analyst warns that “while the evidence strongly suggests Bitcoin will reach higher levels before a significant correction, it is critical to adapt to changing 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