Bitcoin’s price has been soaring, thanks to institutional investors. It even hit a record high above $111,900! But one analyst thinks the party’s over.
The Elliot Wave Theory Predicts a Drop
This analyst uses the Elliot Wave Theory, a way to predict price movements by looking at chart patterns. The theory says a five-wave pattern usually ends with a price drop. According to this analyst, Bitcoin has completed these five waves, with the recent high being the final one.
Bearish Signals Abound
This completion means Bitcoin has hit the top of a long-term upward trend. This is a bearish signal, indicating a price decline. The analyst points to several factors supporting this:
- Divergence: The analyst sees signs of weakening momentum, suggesting a price reversal.
- Resistance: The price has struggled to break through resistance between $76,000 and $111,000, forming a potential “double top” pattern.
Predicting the Bottom
The analyst predicts a significant price drop:
- First Target:
A drop to around $66,000 (almost 50% from current levels). - Second Target: A further fall to $53,000.
- Final Target: A potential crash to as low as $31,000. This aligns with a key Fibonacci retracement level.
The analyst believes that $31,000 will be the bottom, marking the start of a new accumulation phase and the beginning of the next bull run.
