Elliot Wave Theory Indicates Bitcoin’s Current Position in the Cycle – Has the Bull Rally Ended?

Cryptocurrency analyst Tolimanu utilized the Elliott Wave Theory to analyze Bitcoin’s current market phase. His conclusion indicates that the bull market has not reached its conclusion, suggesting that Bitcoin is headed towards new highs.

Elliott Wave Theory Indicates Bitcoin’s Current Status in the Cycle

In a post on X, Tolimanu explained that the Elliott Wave Theory consists of a five-wave upward movement representing a primary trend, followed by an ‘ABC’ correction, which is a natural retracement of that trend. He asserted that unless this Bitcoin correction violates significant long-term support levels, such a pullback is likely to prepare for the next bullish phase.

Additional Insights

Conversely, his accompanying chart indicated that Bitcoin could potentially dip as low as $73,969 during wave C of the ABC correction. However, if Bitcoin remains above this support level, it could propel BTC to achieve higher prices.

Technical analyst Tony Severino recently cautioned that Bitcoin’s price is in a delicate situation. Despite recent gains, he believes BTC still remains bearish. He noted that if the daily momentum shifts to a bearish trend, it could hinder the weekly bullish crossover and push the weekly LMACD indicator below zero.

In another post, Severino pointed out that Bitcoin’s daily RSI failed to cross above 70, which is essential for indicating a bullish momentum. He observed that failing to maintain above 70 previously contributed to significant declines during the last bear market. Throughout the bear market, the RSI remained below 70.

The analyst also mentioned that in 2023, the two recent peaks did surpass 70, but it lacked strength. In 2024, the entire corrective period stayed below 70 on the RSI. Essentially, Severino underlined the significance of 70 on the RSI and reiterated BTC’s enduring bearish status.

BTC Aiming to Address CME Gaps Both Below and Above

Crypto analyst Titan of Crypto highlighted that Bitcoin is attempting to tackle the CME futures gaps surrounding its current pricing. The upside gap ranges between $96,480 and $97,300, while the downside gap is pegged between $91,990 and $93,400. In another statement, the analyst suggested that BTC may need to fill the downside gap first before targeting the higher levels.

He mentioned that the next critical support for Bitcoin is the daily Fair Value Gap, which hovers around $90,000. The analyst anticipated a rebound from that area, projecting a target of $102,096 for that bounce.

As of the most recent update, Bitcoin’s trading price is approximately $94,300, reflecting a decrease over the past 24 hours, according to market data.

Image sourced from Unsplash, chart data obtained from Tradingview.com