Shift in Market Momentum
Recent analysis indicates that Bitcoin's upward trend, which began in early 2023, has likely reached its peak following a drop from over $126,000 to around $104,000. The forecast suggests a prolonged negative period ahead, potentially extending for more than a year, with prices dipping significantly lower than current levels near $108,000.
Elliott Wave Theory Application
This outlook is based on a technical framework that identifies repeating patterns in market behavior driven by collective investor sentiment. The pattern typically involves a series of advances and corrections, and current data shows the completion of a major upward sequence, paving the way for a corrective decline.
Key Projections:- Possible brief rebounds testing previous highs around $124,000, but overall direction remains downward.
- Historical cycles post-halving events support expectations of peaks followed by extended corrections.
- Options market data shows increased hedging for long-term drops, aligning with trader preparations for volatility.
While short-term fluctuations persist, the emphasis is on monitoring for signs of deeper market weakness.