Bitcoin Poised For ‘Blow-Off Top’: Elliott Wave Analysis Suggests New ATH Of $170,000

The Bitcoin (BTC) price has recently entered a consolidation phase following significant upward movements, as the cryptocurrency market experiences heightened volatility at the start of the year. 

Currently, the market’s leading cryptocurrency is hovering above the critical $100,000 milestone, with analysts suggesting that further price increases could be on the horizon.

Analyst Warns Of ‘Overly Bullish Sentiment’

In a detailed analysis by a market expert known on social media as Daily Crypto Trading, the Elliott Wave Theory is being employed to predict Bitcoin’s next moves. 

According to this analysis, the market could be witnessing a flat corrective wave, with a target in the range of $90,000. The analysis confirms that the recent flat ABC structure held firm at the 89-90k levels, indicating that wave 4 has completed. 

The analysis highlights that while the sentiment surrounding Bitcoin’s future is “overwhelmingly bullish,” this can often serve as a cautionary sign. 

As Daily Crypto Trading notes, “Even though wave 4 is done, the sentiment is overly bullish, which is normally a red flag.” Investors are encouraged to approach the situation with caution, acknowledging that while the analysis is rooted in probability, it does not guarantee outcomes.

The macroeconomic landscape is also crucial for understanding Bitcoin’s trajectory. Daily Crypto Trading has previously discussed the potential impact of an impending recession, suggesting that macroeconomic factors must be considered before diving into technical analysis. 

What A $130,000 Price Breach Means For Bitcoin?

The Elliott Wave Theory, which has been notably accurate in previous predictions, is a key component of this analysis. It posits that markets move in predictable waves, and currently, the focus is on the final sub-wave of wave 4. 

The expert anticipates that if Bitcoin surpasses the critical level of $109,000, it will confirm the onset of impulsive wave 5, suggesting a bullish continuation.

Should Bitcoin achieve a strong wave 5, projections indicate a potential price increase of 40-50% from the current levels, with Fibonacci extension levels suggesting targets of $113,000, $117,000, and even $121,000. 

However, there is a caveat: the wave could be truncated, leading to a double top formation and subsequent corrections, or it may fail to reach a new all-time high (ATH). Thus, surpassing the $109,000 mark is deemed a critical milestone for increasing the likelihood of a blow-off top reaching $120,000.

Conversely, if Bitcoin were to dip back to the $90,000 area, it would indicate the formation of a regular zigzag pattern, implying that wave 4 may not be complete. 

As a contingency, an invalidation point has been established at $130,000; a breach of this level could suggest an unforeseen bullish breakout toward a target of $170,000.

Currently, BTC is trading at $104,300, recording losses of 1.4% in the 24-hour time frame. 

Featured image from DALL-E, chart from TradingView.com

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