As an experienced analyst, I have seen my fair share of market volatility and price movements in the cryptocurrency world. And while Bitcoin’s recent 13% drop and break below the psychological $60,000 level is concerning for some, I remain bullish on its long-term outlook.
In spite of Bitcoin plunging by 13% over the last week, causing it to fall beneath the symbolic $60,000 mark and decrease by approximately 20% from its peak prices, one analyst at X continues to express unwavering confidence.
Based on my analysis of the weekly chart, I hold a bullish perspective and believe that the coin will recover from its current weakness during the upcoming trading session. This view is consistent with the bullish trend that has dominated for most of Q4 2023 and Q1 2024.
Bitcoin Is Falling, Losses $60,000
Bitcoin is currently facing significant selling pressure, with a large number of traders looking to unload their holdings. Today, the price dipped below $60,000, reaching new lows not seen since April 2021.
The sale confirmation on April 13 could indicate the initiation of a bearish trend for Bitcoin, potentially causing it to relinquish its advances from February and March 2024.
As an analyst, I believe that Bitcoin’s uptrend will persist if it manages to stay above the $49,000 to $52,000 support level. This zone acts as a sponge for selling pressure, meaning that any significant sell-offs are likely to be absorbed by the market. Therefore, Bitcoin holders can find solace in this observation, as there’s no need for panic despite the recent sell-off.
As a crypto investor, I’d like to share some insights based on the Elliott Wave Principle, which is a popular technical analysis tool. According to this theory, the coin’s price action is currently showing signs of a pause, potentially before we see another wave higher. For those with a more bold approach to trading, this dip could be an excellent opportunity to buy at lower prices, aiming for potential gains in the upcoming fifth wave.
At present, the analyst observes Bitcoin is in the fourth wave of a price pattern, which is expected to last roughly equal to the duration of the second wave. Subsequently, there was a brief recovery followed by a significant decline, with prices peaking around May 2023. However, during the third wave, Bitcoin’s price rallied strongly, dipping below $30,000 before reaching new record highs at approximately $73,800.
Based on the Elliott Wave Theory, the decline from record highs to current levels might signal that prices are in the fourth wave before a subsequent advance to complete the fifth wave.
What’s Next? Will BTC Breach $100,000 In Wave 5?
Despite the uncertainty regarding when Bitcoin’s price will reach its lowest point, an analyst recommends keeping an eye on two exponential moving averages (EMAs) with periods of 21 and 50. A potential retest of these levels could provide support for traders, enabling them to consider purchasing during price dips in expectation of the final uptrend in Wave 5.
The analyst failed to identify the potential future target based on the chart. Yet, considering that Wave 3 and Wave 5 have approximately the same length, Bitcoin has a high probability of reaching over $100,000 once its current volatile price trend subsides.
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2024-05-02 05:27