For followers of Elliot wave theory and Fibonacci extensions, a bright future is coming for bitcoin (BTC).
Bitcoin (BTC) is currently hovering around $21,000. For the past few months, the flagship crypto has struggled to really break through this level. However, analysts remain formal. A significant breakout of this price range would be an important first step toward the bull market that players in the sector have been waiting for.
$161,800, New Goal for Bitcoin (BTC)?
According to a new prediction from Coin Chartist based on the Fibonacci tool, bitcoin (BTC) could soon hit $161,800 in tokens. In fact, the Fibonacci tool has always been part of the top-tier arsenal of cryptocurrency traders. It is used very often to determine the appropriate levels of investment and profit in the market.
It is important to note that the bitcoin (BTC) price always tends to gravitate around key Fibonacci levels.
Elliot Waves Confirmation
Fibonacci extensions were not the only analytical tool to predict bitcoin (BTC) at $161,800. Elliott Wave Theory also provides confirmation in this direction. That is why Coin Chartist used it as part of the analysis of the cryptocurrencies price.
It should be remembered that Elliott’s theory is based on the fact that the rise and fall of crowd psychology always have the same repetitive patterns. The up-and-down swings in price are called “waves.”. Elliot Wave Theory helps to understand market cycles by identifying five main waves.
Since bitcoin (BTC) is a cyclical asset, this theory allows for very good predictions about the flagship crypto. Also, Fibonacci correlations are ubiquitous. Bullish impulse waves tend to extend into Fibonacci extensions. As for the corrective waves, they end at the Fibonacci retracement levels.
According to this theory, bitcoin (BTC) is currently at the end of the second corrective wave. This corresponds to a Fibonacci level and the potential start of the third impulsive wave. The theoretical target for this wave is also the $161,800 level.
To sum up, the effectiveness of cryptographic analyzes based on Fibonacci spreads and Elliot wave theory cannot be denied. However, it is clear that bitcoin (BTC) is influenced by factors that can distort such analyses.
In any event, technical analysis using Fibonacci or Elliot Waves is not a perfect art. They are based on the probabilities of human psychology at the time, as well as the chances that similar patterns will be repeated in the future. There are no guarantees. Critics and academics propose that technical analysis is useless, that markets move randomly, so analytical tools cannot predict future prices. There are plenty of traders with huge bank accounts who wouldn’t think so. The best advice is to conduct your own research before making major decisions.
By Audy Castaneda
