Bitcoin’s Price Consolidation Zone: A Stuck Situation?

Bitcoin appears to be trapped in a consolidation range of $50,000 to $52,000, with neither the buyers nor the sellers seizing control.

Elliot Wave Theory predicts Bitcoin’s lowest and highest points – check out the targets!

🔍 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 has led to speculations about whether the BTC price has finally found a local top. Crypto analyst Alan Santana, using the Elliot Wave Theory, predicts where the price might be headed next.

Elliot Wave Points To Correction To $31,800

In a recent analysis shared by Alan Santana on TradingView, the Elliot Wave theory is used to determine the possible direction of the Bitcoin price. According to the theory, there are five waves in a price cycle, with three waves already completed and the fourth wave expected to happen soon.

Given that the third wave was very bullish and the price rose rapidly, the fourth wave is projected to be more bearish. Santana explains that this fourth wave indicates an upcoming correction, but it would not go as low as the second wave. The analyst believes that this correction could lead to a sharp drop in the Bitcoin price, with a potential bottom at $31,800. If this scenario plays out, Bitcoin could temporarily return to the $20,000s before resuming its upward movement.

📈 “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 the Elliot Wave Theory,” Santana said. He further adds, “Just as wave three leads to a correction (wave four), wave four invariably leads to another impulse: the final and fifth wave of the higher degree.”

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Bitcoin Top At $138,000?

The Elliot Wave theory not only points towards a possible bottom but it also gives an idea of where the Bitcoin top might lie in the fifth wave. Santana uses one of the two Wave Principle methods to forecast this price. The theory suggests that the peak of Wave 5 would be three times higher than that of Wave 3. This is determined by taking into account the peak of the third wave and multiplying it by three.

So far, the local top of this third wave seems to be $52,985. Applying the Wave Principle, the analyst calculates a potential peak in the fifth wave at $138,714. As for when this peak will occur, Santana believes it could be around 2025.

💭 “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.

🤔 Q&A: What Else Should We Know?

Q: Can the Elliot Wave Theory be applied to other cryptocurrencies? A: Yes, the Elliot Wave Theory can be applied to other cryptocurrencies as well, not just Bitcoin. It is a popular technical analysis tool used by traders to identify patterns and potential price movements.

Q: Are there any other indicators or theories that support this analysis? A: Yes, there are other indicators and theories that can complement the Elliot Wave Theory analysis. Traders often use a combination of different tools, such as Fibonacci retracements, moving averages, and volume analysis, to validate their predictions.

Q: Do all analysts agree with this analysis? A: Not all analysts agree on the same price targets or wave counts. The Elliot Wave Theory interpretation can vary among analysts, and each trader may have their own unique perspective based on their analysis and experience.

📈 Future Outlook: A Big Picture Perspective

Based on the Elliot Wave Theory analysis, it seems that Bitcoin is currently in a consolidation phase, preparing for a major move. The upcoming correction to $31,800 could be an opportunity for investors to accumulate more Bitcoin before the next upward cycle.

Looking ahead, if the fifth wave indeed reaches $138,000 by 2025, Bitcoin has significant potential for growth in the coming years. However, it is essential to remember that cryptocurrency markets are volatile and subject to various factors, so thorough research and caution are necessary before making any investment decisions.

🔗 Reference Links: – Bitcoin Price Chart from TradingView.com – Bitcoin News: Bitcoin Holds Above $50,000 Despite Nasty Drop, Crypto Expert Says Local Top Not In – Bitcoin Price Rally Breach $50,000 a Month: Matrixport – Crypto Stocks Surge, Analyst Says It’s Not Time to Turn Bearish on Bitcoin – Bitcoin Price & Touching $70,000: When Will the Rally Begin?

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Disclaimer: The above article is for informational purposes only and should not be considered as financial advice. Always do your own research before making any investment decisions.

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