Key facts:
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Bitcoin is preparing to enter a new bull run, says analyst.
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Bitcoin could potentially go to $190,000 in this bull cycle.
Bitcoin (BTC) has consolidated its price both above and below the $60,000 level, preparing for a new run towards all-time highs, according to the market analyst who identifies himself on specialized forums as ‘BullBear Trading’.
This investor analysis It is based on the Elliot Wave theory, which suggests the completion of a pattern with a possible breakout move in September.
Elliot Wave Theory is a method of technical analysis that identifies recurring patterns in financial markets, based on the mass psychology of investorsand which manifest themselves in waves of impulse and correction.
This establishes that large price movements are composed of five impulsive waves in favor of the trend, followed by three corrective waves against it.
BullBear Trading, backed by daily chart analysis, anticipates that the breakout could occur in mid to late September.
BTC price analysis based on Elliot waves. Source: BullBear Trading.
According to this specialist, bitcoin is currently in the fourth wave of a bullish impulse patterncharacterized by a sideways or downward correction within a broader uptrend.
The analyst compares the current wave sequence 3-4 with the already completed wave sequence 1-2, looking for similarities in price behavior and technical indicators to predict the future of wave 4.
A key factor that BullBear Trading highlights is that prior to the third wave, the moving averages were compressed, suggesting accumulation and an imminent trend change.
If your prediction is correct, the end of wave 4 would present an excellent opportunity to open a long position, waiting for the start of wave 5.
According to BullBear Trading, this fifth wave is typically the most powerful, outperforming the gains seen in waves 1 and 3.
Bitcoin could reach $190,000
If wave 5 repeats the 180% move seen in wave 3, bitcoin could hit $190,000, a level that falls within the $100,000 to $300,000 range, the analyst notes.
However, he warns that, If Bitcoin were to fall back into the $50,000-$53,000 region, you would be forced to reconsider your analysis.since the upward trend that started in November 2022 would be in danger of breaking.
BullBear Trading also notes that Bitcoin price could consolidate in 2-4 weeks below the $72,000-$74,000 resistance range before starting its next bull run.
There are more signs of a possible bull run for bitcoin
To this forecast Two key factors are added, from the on-chain analysis, that are driving this possible rise: the decrease in BTC reserves in the exchanges and the increase in stablecoin reserves, mainly USDT.
The reduction in bitcoin reserves on exchange platforms reflects less selling pressure, as Investors prefer to transfer their funds to walletswhich reduces the supply in circulation, as reported CryptoNews.
On the other hand, the increase in reserves of stablecoins on exchanges suggests that investors are accumulating capital ready to be deployed in the purchase of assets like bitcoin, which generally translates into an increase in demand and, consequently, a possible rise in prices..
Both factors converge and project an increase in the BTC price, which could push the rest of the Cryptocurrency market towards an upward trend in the coming weeks.
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