Elliot Wave Analyst Predicts Bitcoin Price Will Crash In Final Move, What’s The Target?

Overview

A recent forecast from an Elliott Wave analyst indicates that Bitcoin could face significant declines, with projections suggesting a drop of over 14% from its current price near $65,000. This analysis highlights the ongoing bearish pressures and outlines a potential final move in the current bear market cycle.

Analysis of the Current Situation

The Elliott Wave analyst has articulated that Bitcoin is entering its final leg down within the current bear market cycle. According to the analyst, the corrective Wave 4 structure has concluded, leading to the commencement of Wave 5. This perspective is crucial because it signifies a shift from a temporary relief phase to an anticipated decline. The analyst’s post emphasizes that the previous rally is not indicative of a new bull market cycle, reinforcing a bearish outlook.

The accompanying chart from TradingView illustrates that Wave 5 is beginning at the end of a triangle formation, which marked the end of Wave 4. The initial target for this final wave is positioned near the 1.0 Fibonacci Retracement level, projected at approximately $60,385. This target is significant as it represents a critical psychological and technical level for traders and investors.

Furthermore, the analyst forecasts a potential market bottom at $55,759, corresponding to the 1.618 Fibonacci level. This forecast indicates that Bitcoin could experience a substantial decline, potentially erasing over 55% of its value from all-time high levels above $126,000. The current structure of Bitcoin shows no clear signs of recovery until the correction is fully realized, prompting the analyst to caution investors and traders to prepare for this possible decline.

The analyst’s review of Bitcoin’s Wave 4 performance reveals that Bitcoin has completed Waves 1 through 4 of a five-wave bearish impulse. Notably, Bitcoin’s price breakdown from above $90,000 saw it slice through key Fibonacci retracement levels, including the 0.382 level at $90,601 and the 0.5 level at $75,300. Following this, Bitcoin’s price continued to decline below the 0.382 Fibonacci Retracement level at $71,689.20, marking the commencement of the Wave 4 consolidation phase.

In previous analyses, the analyst had indicated that Bitcoin had entered its corrective Wave 4 structure. The temporary rally above $71,000 leading into Wave 4 was characterized as a false signal for a new bull market cycle. The completed Wave 4 triangle is defined by descending resistance near $70,000 and support from a rising trendline around $66,000, which the analyst described as a classic bearish continuation pattern. This trendline suggests that further downside pressure is likely for Bitcoin’s already weak price.

From author

The current bearish sentiment surrounding Bitcoin is indicative of broader market trends and investor psychology. The reliance on Fibonacci levels in the analyst’s predictions suggests a technical approach to market forecasting, which many traders closely monitor. The completion of Wave 4 and the anticipation of Wave 5 create a narrative that could influence trading strategies and market sentiment significantly.

Impact on the crypto market

• The bearish outlook may lead to increased selling pressure as traders react to the anticipated decline.
• A confirmed drop to the projected targets could trigger stop-loss orders, exacerbating the downward movement.
• Market sentiment may further deteriorate, leading to a broader impact on altcoins and the overall cryptocurrency market.
• Investors may become more cautious, potentially reducing liquidity and increasing volatility in the market.
• Technical analysis, particularly the use of Elliott Wave structures, may gain more attention as traders look for signs of reversal or further declines.