Is Bitcoin on Track for a New All-Time High Following Its $104,000 Surge? Insights from a Market Specialist

After hitting a local low of $74,000 in mid-April, Bitcoin has experienced a significant market upswing, establishing a positive price trend over the last three weeks. In a remarkable turn, the leading cryptocurrency surpassed the $100,000 mark last week, reaching a peak of $104,300. Following this achievement, market analysis from NewThoughtCrypto has offered insights into Bitcoin’s anticipated trajectory.

Bitcoin’s Macro Perspective Signals Path to New Highs, But a Correction is Imminent

On May 9, NewThoughtCrypto analysts shared their macro and micro analysis of Bitcoin’s performance through the lens of the Elliott Wave Theory. They noted that, on the daily chart, Bitcoin’s rise to $104,300 indicates the completion of the fifth wave within an impulse phase, signaling that a market correction is on the horizon.

The Elliott Wave Theory posits that market prices move in two principal cyclical patterns: the impulse phase, characterized by five waves (i-v), and the corrective phase, consisting of three waves (A-B-C).

Upon finishing wave V of the impulsive trend, the analysts from NewThoughtCrypto predict that Bitcoin will undergo a correction, with targets typically around the 0.5 to 0.618 Fibonacci retracement levels. With $104,300 serving as the peak, the anticipated correction may drive prices back to the range of $86,000 to $89,000, aligning with wave C in the corrective phase.

Interestingly, there is a possibility that Bitcoin might regain its upward momentum before the correction concludes, potentially demonstrating a price rebound in accordance with wave B of the corrective structure. Nonetheless, the experts at NewThoughtCrypto foresee a complete correction prior to Bitcoin’s renewed pursuit of a new all-time high, which they anticipate may materialize during the summer.

Diving Deeper: $106,000 Target Before Possible Correction

Examining the Bitcoin market from a micro perspective using the 4-hour chart, NewThoughtCrypto analysts indicate that Bitcoin has successfully completed waves I, II, and III, with wave III exceeding market expectations.

The leading cryptocurrency is now poised for wave IV, which typically serves as a corrective wave. Given that wave III peaked at $104,300, the expected correction is likely to bring the price down to between $100,000 and $101,000. Following that, a bullish wave V is anticipated to push prices up to $106,000 before the correction phase begins.

At the current moment, Bitcoin is trading at $102,810, reflecting a slight increase of 0.06% over the past day. Simultaneously, the daily trading volume has decreased by 6.68%, reaching a value of $62.23 billion.