The Elliott Wave Theory has become very popular among Bitcoin analysts, given its effectiveness in estimating where the cryptocurrency’s price is headed. Using the same theory, pseudonymous cryptocurrency analyst XForceGlobal has estimated what might happen next to the price of Bitcoin.
Elliott wave theory points to recovery
In the analysis published on TradingView, XForceGlobal used the 5-Wave Elliott Wave Theory to predict the further rise in Bitcoin price. The chart shows waves and sub-waves, each of which has different implications for Bitcoin price.
The crypto analyst points out that sub-waves ranging from 1 to 5 are currently in play. 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.
Bitcoin price caught in Wave 3 is actually good for price from this point on, considering that the third wave is known to be bullish. It is also a long wave, meaning that its effects will last longer than the bearish Wave 2, although shorter than Wave 1.
However, rather than simply being a shot in the arm for Bitcoin’s price, the crypto analyst warns that this could end up being an ABC wave, which is bearish in nature for the price, in which case Bitcoin’s price would rise and then fall.
Bitcoin Future Goals
As mentioned above, Bitcoin price caught in sub-wave 3 is bullish, which means the price could rise further. According to the crypto analyst’s chart, a 100% move from here is possible, which would push the BTC price up to $126,000.
However, the next wave, Subwave 4, is very bearish, with analysts predicting a major crash. They have set a target of $39,728, down over 60% from the $126,976 price target from Subwave 3, which would mark the most notable drop in Bitcoin price from 2022.
The next wave, Subwave 5, is expected to continue the bullish narrative, triggering a rise of over 200% from the Subwave 4 lows. It is expected to peak at around $153,000, marking the completion of five Subwaves.
Despite the confident scenarios that have been presented, the cryptocurrency analyst warns that “while the evidence strongly suggests Bitcoin will reach higher levels before any significant correction, it is crucial to remain flexible 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 intricacies of the cryptocurrency market.”
Featured image created with Dall.E, chart from Tradingview.com
