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Over the last few weeks, the Bitcoin price has been on an upward trajectory, propelled forward mainly by institutional adoption and buying. This has seen the Bitcoin price rally to new all-time highs at $111,900, and has remained above $100,000 despite a turn in market sentiment toward the negative. However, this support has not bolstered confidence, with one analyst predicting that the leading cryptocurrency has seen the end of this bull cycle.
Bitcoin Price Completes Elliot Wave Theory
The Elliot Wave Theory is a chart pattern that has been widely used as Bitcoin has become more mainstream in an effort to predict where the price may be headed next. The theory consists of five full waves, at the end of which lies a bearish trend for the digital asset. So far, the Bitcoin price has been moving through different waves according to different analysts. But Sniper Academy on the TradingView platform has revealed that the five waves have been completed.
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Using the 1-month Bitcoin price chart, the crypto analyst shows that there have been five different waves completed. The latest all-time high peak above $111,900 is shown to have been the fifth and final wave, suggesting that this bullish impulse is complete.
Given that the Bitcoin price has now completed this theory, the crypto analyst explains that this means that the cryptocurrency has now hit the upper boundary of a long-term ascending channel. Simply put, this is very bearish for the digital asset as this means an end to its upward trajectory.
Right now, the analyst showed that the Bitcoin price is already forming divergence after the completion of the fifth wave. This has triggered a weakness in the momentum and has come as a result of resistance forming between $76,000 and $111,000. This trend shows that a potential double top has been created, and that means that there is nowhere for the Bitcoin price to go now but down.
BTC Price Targets $31,000 Bottom
Given the fact that the crypto analyst believes that the Elliot Wave Theory has played out and the five waves have been completed, the next expectation is a sharp drop in the Bitcoin price. The first move is expected toward $66,000, which would be an almost 50% decline in price from here.
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However, this is not the worst of it, as the crypto analyst sees the cryptocurrency still breaking down to $53,000. Then, if this level does fail to hold, then a fall all the way down to as low as $31,000, serving as the bottom of the channel. This also coincides with the 0.618 Fibonacci retracement.
Once the Bitcoin price is back at $31,000, the crypto analyst believes that accumulation would begin at this key zone. This will then serve as the important level that will drive the start of the next major bull cycle.
Featured image from Dall.E, chart from TradingView
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