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Bitcoin News: Potential Drop to $31,000 as Elliot Wave Cycle Completes
Recent developments have seen Bitcoin’s price soar, achieving unprecedented highs above $111,900, driven by significant institutional investments. Despite these gains, the cryptocurrency has consistently held above $100,000, even amidst shifting market sentiments. Yet, this robust support has surprisingly not fortified investor confidence, as analysts suggest the culmination of the current bullish cycle.
Understanding the Elliot Wave Theory Impact
The Elliot Wave Theory, a renowned analytical tool for predicting price movements, suggests a forthcoming bearish trend for Bitcoin. According to the analysis on TradingView by Sniper Academy, Bitcoin has completed the critical fifth wave of this model. This completion signals a possible reversal from its recent peak, indicating a potential decline in Bitcoin’s market value.
The theory’s analysis, plotted on a 1-month Bitcoin price chart, illustrates that the last all-time high was indeed the final phase of this bullish cycle. This aligns with reaching the upper limit of a long-standing ascending channel, which traditionally suggests a bearish outlook for the asset.
Market Resistance and Potential Decline
Current market analysis shows that Bitcoin is forming a divergence after completing its fifth wave, highlighting weakened momentum due to mounting resistance within the $76,000 to $111,000 range. This development suggests the formation of a potential double top pattern, often considered a bearish indicator with no further upward movement expected.
Projected Price Targets and Bottom
The completion of the Elliot Wave and the observed market resistance lead analysts to anticipate a significant price correction. Initial projections target a move down to $66,000, marking nearly a 50% decline from current levels. Further breakdowns could see the price plummet to $53,000 and potentially down to a critical support level at $31,000, coinciding with the 0.618 Fibonacci retracement level.
Should Bitcoin reach this foundational price level of $31,000, it is expected to become a significant accumulation zone, setting the stage for the next major bullish cycle in the cryptocurrency market.
For those interested in detailed financial insights and more bitcoin news, you can explore further at [Financier News](https://www.financier.news/). Those looking to delve deeper into the dynamics of cryptocurrency can find additional resources and trading options on [Binance](https://www.binance.com/).
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