Bitcoin’s price has been bouncing around $106,000 lately. While investors are still a bit hesitant (the Fear & Greed Index is neutral), some technical analysis suggests a big price jump is coming.
Wave Theory Points to a Rally
One analyst, using Elliott Wave theory, believes Bitcoin’s recent price drop was a healthy correction, completing a WXY pattern. This correction, which started after Bitcoin hit its all-time high of $111,814 on May 22nd, neatly fell within the expected Fibonacci retracement levels (23.6% to 38.2%). Importantly, this correction didn’t extend into deeper bear market territory, supporting the idea of a bullish trend.
The analyst argues that if this correction (Wave 2) is truly over, the next wave (Wave 3) will likely be a significant price increase. Elliott Wave theory suggests Wave 3 is usually the most explosive.
$130,000: A Realistic Target?
Based on the 4-hour chart, the analyst projects Wave 3 could send Bitcoin soaring past $111,800 and potentially all the way to $130,000. This projection is based on the size of Wave 1. The key support zone is between $98,000 and $102,000 – if Bitcoin holds above this, it could signal the start of Wave 3.
Confirmation of this bullish prediction requires Bitcoin to create a new high above the current range, then pull back slightly without breaking below recent lows. This would form a classic “1-2” structure within Wave 3.
Recent Price Action
Bitcoin already saw an 8% price increase after hitting a low of $98,200. A further 4% jump occurred on June 24th following reports of a Middle East ceasefire. As of now, Bitcoin is trading at $106,330.
