Bitcoin briefly surpassed $94,000 but has struggled to hold above $95,000 amidst expectations of a 5th wave breakout. Analysts discuss the potential for an extended wave formation, projecting potential price targets like $109,000 and $173,000. Concerns arise over a bearish divergence in momentum indicators while ongoing Bitcoin outflows hint at a supply squeeze.
Bitcoin has recently seen a surge past the $94,000 mark, igniting some bullish sentiment in the cryptocurrency market. However, the price has struggled to maintain momentum beyond $95,000, leaving analysts puzzled about the ongoing absence of a significant breakout above the coveted $100,000 level. This prolonged wait is reflective of broader patterns and trends in Bitcoin’s price history.
According to theories based on Elliott Wave analysis, Bitcoin appears to be navigating a ‘5th wave’ formation that has not progressed smoothly. Established earlier in 2024, this wave was expected to propel Bitcoin towards the $100,000 milestone, but the current structure instead points to an extended formation. In essence, this means the final upward leg may take longer than normal and includes several smaller impulses. As a result, the price flirts with resistance just under the six-figure mark.
Currently, Bitcoin is engaged in what could be its 3rd sub-impulse wave. If things go as some predict, we could see a peak that exceeds $170,000, coinciding with Bitcoin’s classic four-year cycle pattern. A crypto analyst known as Charting Guy hinted at the potential for a robust altcoin market rally in the later stages of this development on social media.
There are various price targets on the horizon for Bitcoin, illuminating possible future movements. The recent push has set a target around $95,000 for a needed relief rally, but breaking this barrier will be crucial for sustaining bullish energy. Potentially, Bitcoin could also form a double top near $109,000, with bullish Fibonacci extensions indicating movement towards about $128,000. Optimistically, analysts suggest the price might one day reach around $173,000, but that’s a long-term dream rather than an immediate expectation.
Despite the significant gains, momentum indicators present a more cautious picture. The Relative Strength Index (RSI) shows a troubling trend of lower highs, indicating a bearish divergence that often suggests decreasing underlying strength, even as prices rise. While this doesn’t rule out further price growth, it does hint at likely corrections ahead, aligning with typical characteristics of an extended 5th wave.
In the latest data, BTC stands at a trading price of $94,686. Additionally, on-chain analysis reveals that Bitcoin is experiencing notable outflows from exchanges, signalling an impending supply squeeze in the market. This may add even more volatility to the current price dynamics, making for an unpredictable scenario moving forward.
