This article is available in Spanish.
According to a technical analysis by analyst Xanrox, the Bitcoin price is on track to reach the $130,000 mark in the coming months. Notably, this bullish price target could go unnoticed many positive predictions that have surrounded the Bitcoin price in recent times. However, Xanrox’s forecast is intriguing as there is also a bearish outlook after the price target is reached.
To support his prediction, Xanrox depending on a combination of Fibonacci extensions and Elliott impulse waves, two of the most popular analysis tools. Together, these tools enabled Xanrox to not only chart a journey to the $130,000 goal, but also a sharp return to $60,000.
Bitcoin Price Roadmap to $130,000
Take to Trading view To share his opinion, crypto analyst Xanrox emphasizes that the Bitcoin price is high now on its way to play out the fifth Elliot impulse wave, after the fourth impulse wave had already been completed 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 the Elliot Wave theory, the other being corrective waves. An impulse wave is a strong, focused movement in the market that goes in the direction of the overall trend. These waves are divided into five sub-waves, 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 providing a pause for the next part of the trend.
According to Xanrox analysis, Bitcoin has officially kicked off Wave 5 after hitting a correction low of $49,000 in August. This marked the end of Wave 4, which acted as a consolidation period after the dramatic rally during Wave 3, which saw the Bitcoin price reach a new all-time high. With the final wave of momentum underway, the focus has shifted to how high Bitcoin could rise.
To predict the potential peak of Wave 5, Xanrox used Fibonacci extensions. Interestingly, when the Fibonacci extension is applied from the low of Wave 4, the Fib extension of 0.618 lines up perfectly with a major trendline that has marked the peaks of both Wave 1 and Wave 3.
As such, this suggests that the 0.618 Fib extension could play a crucial role in the next phase of Bitcoin’s price action. At the point of this intersection is a price target of $130,000, which represents a significant upside of 100% from current levels.
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What now after $130,000?
The Prospects of Xanrox doesn’t end with just a bullish price target. The analyst also warned and highlighted the possibility of a sharp reversal after Bitcoin reaches its fifth wave peak. Based on patterns, he noted that Bitcoin’s previous waves have undergone significant corrections between 70% and 80% once the impulse wave cycle ends.
For this reason, Xanrox predicted that Bitcoin could crash quickly to $60,000, after reaching $130,000, likely in January 2025.
Featured image created with Dall.E, chart from Tradingview.com