Bitcoin’s Price Projections: The Impact of Global Liquidity and Elliott Wave Analysis

The article discusses how global liquidity and the Elliott Wave model suggest Bitcoin prices could rise to around $166,000. Historical trading strategies have shown substantial profits, indicating the effectiveness of systematic trading. Liquidity analysis further supports price projections, as Bitcoin appears to correlate with the Global M2 Money Supply, suggesting rapid price increases are likely in the near future.

Global liquidity and the Elliott Wave model suggest a bullish outlook for Bitcoin (BTC), potentially driving prices to approximately $166,000. Historical performance of a crypto trading system shows significant gains since 2012, with a notable capacity for maximising profits while limiting losses. Specifically, the system recorded a 200% gain on a trade initiated in February 2023 and a cumulative ROI exceeding 500,000% over 13 years for reinvested profits.

For those opting to analyse Bitcoin’s price movements independently of trading systems, understanding the Elliott Wave (EW) Principle alongside other analytical tools is crucial. The preferred EW count indicates key corrective movements within identified trends, with Bitcoin expected to complete its fourth wave and initiate a fifth wave towards the $166K target, supported by Fibonacci extension levels. Notably, recent price actions have adhered to expected technical behaviour.

In addition to the EW analysis, liquidity serves as a vital market driver, with the Global M2 Money Supply (GMS) closely correlated with Bitcoin’s price trajectory since the 2022 lows. A plot comparing BTC price actions against the GMS indicates a strong relationship, suggesting that upward trends in GMS are likely to precede Bitcoin price increases. Current forecasts indicate GMS will rise in the upcoming weeks, further aligning with the anticipated bullish trends for Bitcoin.

Overall, the findings from the EW analysis and liquidity indicators provide a robust rationale for optimism regarding Bitcoin’s short-term price movement. The comprehensive approach of analysing multiple factors enhances the predictive understanding of Bitcoin’s price dynamics. Dr. Ter Schure, founder of Intelligent Investing, LLC, offers detailed insights and updates on various markets, including cryptocurrencies, reflecting his commitment to in-depth market analysis.