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The price of Bitcoin (BTC) recently entered a consolidation phase after significant upward movements, as the cryptocurrency market faces extreme volatility at the beginning of the year.
Currently, the market-leading cryptocurrency is hovering above the critical $100,000 level, with analysts indicating that there could be further price increases on the horizon.
Analyst warns of ‘excessive bullish sentiment’
In detail analysis By a market expert known on social media as Daily Crypto Trading, Elliott Wave Theory is used to predict Bitcoin’s next movements.
According to this analysis, the market may see a flat corrective wave, with a target around $90,000. Analysis confirms that the recent flat ABC structure remained stable at 89-90K levels, indicating that wave 4 has completed.
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The analysis highlights that although sentiment surrounding Bitcoin’s future is “overwhelmingly bullish,” this can often serve as a warning sign.
As Daily Crypto Trading notes, “Even though Wave 4 is over, sentiment is excessively bullish, which is usually a red flag.” Investors are encouraged to approach the situation with caution, recognizing that while the analysis is rooted in probabilities, it does not guarantee outcomes.
the Macroeconomic landscape It is also crucial to understanding Bitcoin’s trajectory. Daily Crypto Trading has previously discussed the potential impact of an impending recession, suggesting that macroeconomic factors should be taken into consideration before diving into technical analysis.
What does a $130,000 Bitcoin price breach mean?
Elliott Wave Theory, which has been remarkably accurate in previous forecasts, is a key component of this analysis. It assumes that markets move predictably WavesCurrently, the focus is on the last sub-wave of wave 4.
The expert predicts that if Bitcoin crosses the critical level of $109,000, it will confirm the beginning of impulsive wave 5, indicating a bullish continuation.
If Bitcoin achieves a strong wave 5, forecasts indicate a potential price increase of 40-50% from current levels, with… Fibonacci extension The levels indicate targets of $113,000, $117,000 and even $121,000.
However, there is a caveat: the wave may be truncated, leading to the formation of a double top and subsequent corrections, or it may fail to reach a new high. Highest level ever (Ath). Therefore, crossing the $109,000 mark is a crucial milestone to increase the possibility of the explosive top reaching $120,000.
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Conversely, if Bitcoin falls back to the $90,000 area, it will indicate the formation of a regular zigzag pattern, which means wave 4 may not be completed.
As a contingency, an avoidance point was set at $130,000; A breakout of this level could indicate an unexpected bullish breakout towards the target at $170,000.
Currently, BTC is trading at $104,300, recording losses of 1.4% on the 24-hour time frame.
Featured image of DALL-E, chart from TradingView.com
