Unveiling Bitcoin’s Latest Market Movements
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The Recent Bitcoin Rally and Its Market Implications
Bitcoin has recently witnessed an impressive surge, breaking past the $94,000 mark, stirring a bullish sentiment throughout the cryptocurrency market. However, this upward momentum has stalled just shy of $95,000. This pattern is part of a broader trend where Bitcoin’s anticipated breakthrough above $100,000 remains a distant target.
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The Prolonged 5th Wave of Bitcoin
The weekly analysis of Bitcoin’s market trends reveals a classic impulsive pattern as per the Elliott Wave Theory. Yet, it’s increasingly evident that the 5th wave is not progressing in a linear fashion. Beginning in mid-2024, Bitcoin embarked on a 5th wave journey as it started its ascent towards the $100,000 milestone. This wave is the final part of a series that commenced as far back as late 2022.
The current wave structure suggests an extended 5th wave, a scenario where the final upward movement extends longer than usual, with additional sub-impulse waves. Consequently, Bitcoin’s price continues to hover below the $100,000 mark. Notably, Bitcoin is navigating its 3rd sub-impulse wave at present. Should this extended wave fully materialize, it might align with Bitcoin’s traditional four-year cycle, potentially reaching a peak above $170,000. According to a crypto analyst known as Charting Guy on social platform X, this could trigger significant rallies in altcoins during its later stages.
Analyzing Bitcoin’s Future Price Trajectories
Beyond the extended 5th wave scenario, the analyst presents other potential pathways for Bitcoin. The recent breach of the $95,000 level was identified as a target for a relief rally. Nevertheless, surpassing this threshold is crucial for sustaining the bullish momentum.
Future price targets outlined by the analyst include a potential double top around $109,000 and a bullish Fibonacci extension towards $128,000, corresponding to the 1.414 Fibonacci level. Further upward momentum could propel Bitcoin towards the 1.618 Fibonacci extension near $173,000, albeit this remains an optimistic long-term projection at the zenith of the extended 5th wave.
Despite the robust price increase, momentum indicators suggest a more cautious outlook. The Relative Strength Index (RSI) on the weekly chart shows a pattern of lower highs, potentially indicating bearish divergence. This divergence typically signals weakening internal strength within the uptrend, even as prices achieve new highs. While this does not rule out the possibility of further price increases, it suggests a higher likelihood of corrective phases, characteristic of an extended 5th wave.
As of now, Bitcoin is trading at $94,686. On-chain data highlights a looming supply squeeze due to ongoing Bitcoin outflows from cryptocurrency exchanges.
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