Bitcoin’s Market Position: Are We Still in a Bull Run?

Crypto analysts explore Bitcoin’s current market cycle using Elliott Wave Theory, suggesting the bull run may not be over yet. Despite warnings of potential bearish trends, they identify key support levels and price gaps that could influence future price movements. Bitcoin currently trades around $94,300, experiencing a slight drop.

In a recent analysis, crypto expert Tolimanu applied the Elliott Wave Theory to assess Bitcoin’s current position in the market cycle. He believes that the bull run may still have legs, suggesting that Bitcoin could soon reach new highs.

Tolimanu explained that the Elliott Wave Theory typically illustrates a 5-wave upward movement for a primary trend, followed by an ‘ABC’ correction. He opined that so long as Bitcoin does not breach significant long-term support levels, the pullback may set up a bullish phase, rather than signalling an end to the rally.

In a slightly bearish scenario, Tolimanu’s chart revealed that Bitcoin might dip as low as $73,969 during the wave C correction. However, he indicated that maintaining support above this level could lead BTC back to new highs.

Another technical analyst, Tony Severino, offered a more cautious view. He called attention to Bitcoin’s current pricing as somewhat unstable. Despite its recent gains, Severino maintains Bitcoin is still exhibiting bearish characteristics. He commented that a daily bearish momentum crossover could hinder a weekly bullish trend, potentially pushing the weekly LMACD below zero.

Additionally, Severino pointed out that Bitcoin’s daily Relative Strength Index (RSI) has not exceeded the critical threshold of 70, which typically signals bullish impulses. In fact, he warned that a failure to breach this level previously led to a significant downturn in the last bear market. Throughout that downturn, Bitcoin consistently remained under the 70 mark.

Severino observed that while Bitcoin did achieve two local tops above 70 in 2023, these were not convincing indicators of strength. The entire corrective phase of 2024 has also remained below the important 70 level on the RSI, emphasising the ongoing bearish sentiment around Bitcoin.

Turning to Bitcoin’s price action, analyst Titan of Crypto discussed potential futures gaps that Bitcoin could fill, both above and below its current price. Specifically, he noted that there is an upside gap between $96,480 and $97,300 and a downside gap situated between $91,990 and $93,400. Titan of Crypto suggested that Bitcoin may first address the downside gap before shifting focus to higher targets.

Regarding market dynamics, he identified the daily Fair Value Gap as the next key support for Bitcoin, estimated around $90,000. He speculated that a bounce from this support is likely, with an anticipated target around $102,096.

As of this writing, Bitcoin is trading near approximately $94,300, reflecting a minor decline over the past 24 hours, according to CoinMarketCap data.