After a week of volatile trading, Bitcoin has stabilized near the $106,000 level. On-chain metrics indicate lingering investor caution, with the Crypto Fear & Greed Index reflecting neutral sentiment. However, technical analysis suggests Bitcoin may be poised for a significant upward move.
Elliott Wave Analysis Signals Bullish Continuation
Wave 2 Correction Appears Complete
Renowned crypto analyst XForceGlobal identifies Bitcoin's recent price action as a completed WXY corrective pattern within an Elliott Wave framework. Key observations:
- The correction retraced between 23.6% and 38.2% Fibonacci levels
- Wave 2 maintained bullish macro structure (avoiding deeper 0.618-0.886 retracements typical of bear markets)
- $98,200 weekend low met minimum correction target of ~$90,000
👉 Why Elliott Wave theory matters for crypto trading
Wave 3 Projection: The Path to $130,000
With Wave 2 potentially complete, technical projections suggest:
- Wave 3 typically represents the most powerful impulse wave
- Initial target exceeds previous ATH of $111,814 (May 22)
- Extended projection reaches above $130,000 based on Wave 1 expansion
Key confirmation requires:
- New local high above current range
- Subsequent pullback holding above recent lows
Market Context and Price Drivers
Bitcoin has shown resilience amid geopolitical events:
- 8% rebound from $98,200 low following Middle East tensions
- 4% single-day gain on June 24 amid ceasefire reports
- Current trading at $106,330 demonstrates strong support
The $98,000-$102,000 zone remains critical as potential Wave C termination area. A confirmed breakout would validate the bullish count.
Frequently Asked Questions
What timeframe does this Elliott Wave analysis use?
The analysis primarily examines Bitcoin's 4-hour candlestick chart, providing optimal balance between short-term precision and medium-term trend identification.
How reliable is Elliott Wave theory for crypto predictions?
While no methodology guarantees accuracy, Elliott Wave provides a structured framework for understanding market psychology. Combined with other indicators, it offers valuable perspective on potential price movements.
What other factors could influence Bitcoin's price?
Several elements may impact trajectory:
- Institutional adoption rates
- Regulatory developments
- Macroeconomic conditions
- Technological advancements
👉 Essential tools for crypto technical analysis
Why $130,000 specifically?
This target derives from:
- Measured move projection based on Wave 1 length
- Fibonacci extension levels
- Psychological resistance zones
- Historical volatility patterns
How should traders approach this potential scenario?
Prudent strategies include:
- Waiting for confirmed Wave 3 structure
- Implementing risk management protocols
- Scaling into positions gradually
- Monitoring volume and momentum indicators
The coming weeks will prove crucial for determining whether this bullish count validates. Traders should remain attentive to both technical developments and fundamental drivers in the cryptocurrency space.