According to a technical analysis by Xanrox, Bitcoin’s price could reach an astonishing $130,000 in the coming months. This bullish target stands out amidst various optimistic predictions in recent times. However, Xanrox’s analysis is particularly compelling because it also includes a bearish outlook following the anticipated price surge.
Xanrox’s prediction is grounded in a blend of Fibonacci extensions and Elliott impulse waves, both renowned for their analytical utility. These tools allowed him to chart a course to $130,000, followed by a steep drop to $60,000 thereafter.
In a recently shared analysis on TradingView, Xanrox detailed that Bitcoin is in the midst of executing the fifth Elliott impulse wave, having concluded the fourth wave in August. Impulse waves, which consist of five segments, form a crucial component of Elliott Wave Theory. These waves, alternated with corrective waves, indicate the market’s directional trends. The odd-numbered waves (1, 3, and 5) symbolize the trend’s driving force, while the even-numbered waves (2 and 4) represent consolidation periods.
Following a correction to $49,000 in August, Bitcoin initiated Wave 5, leaving behind the consolidation of Wave 4, which followed a spectacular rally in Wave 3, during which Bitcoin achieved a new all-time high. Now, as the final impulse wave unfolds, speculation intensifies regarding Bitcoin’s potential zenith.
To estimate the peak of Wave 5, Xanrox applied Fibonacci extensions. Remarkably, extending the Fibonacci from the Wave 4 low, the 0.618 level aligns precisely with a long-standing trendline that marked the peaks of Waves 1 and 3. This suggests that the 0.618 Fibonacci extension could serve as a critical juncture, pinpointing a price target of $130,000, which represents a 100% increase from current levels.
Yet, Xanrox’s forecast doesn’t solely focus on an upward trajectory. He also warns of a potential sharp reversal post the fifth-wave peak. Historically, Bitcoin’s waves have undergone significant corrections ranging between 70% and 80% after the completion of an impulse cycle. Therefore, Xanrox envisions Bitcoin might plummet to $60,000 after touching the $130,000 mark, potentially by January 2025.
The unfolding of these waves and price movements continues to captivate market participants, with Bitcoin bulls pushing for new all-time highs.