The daily Bitcoin chart shows five developed price movements in an Elliott Wave count. Wave 3, which is of a higher degree, peaked at $108,360 on Dec. 17, causing the price to start retracing towards Wave 4.
It formed a rising wedge, which usually signals the end of an uptrend, and has now broken its support level on a 15% decrease.
Following this correction, Wave 5 is anticipated, projecting a new upward trajectory towards $120,000 or higher.
BTCUSD broke ascending support | Credit: Nikola Lazic/TradingView
A descending Relative Strength Index (RSI) divergence signals diminishing bullish momentum, aligning with a corrective phase.
The price is currently hovering near the 0.236 Fibonacci retracement level at $93,756, which could act as initial support.
A deeper retracement towards the 0.382 or 0.5 Fibonacci levels may provide a stronger base for the next impulse wave.
Overall, the structure suggests a healthy market correction after significant bullish progress.
The Wave 4 retracement and the emergence of buying momentum near Fibonacci support levels for opportunities to ride the next impulsive move upwards.
Key Observations:
Wave 3 seems to have peaked with visible RSI divergence.
Initial support lies near the 0.236 Fibonacci retracement at $93,756.
Deeper retracements to $86,129 (0.382) or $79,965 (0.5) are plausible.
Wave 5 could push Bitcoin’s price to $120,000 or higher.
RSI weakening signals are a corrective phase but maintain a bullish structure.
BTC Price Prediction
Looking closely at the hourly BTC chart, we can see that Wave 3’s peak transitioned into a Wave 4 ABC correction.
The price formed a lower high (B wave) after a significant drop (A wave), suggesting further downside towards Wave C before resuming the next bullish impulse.
BTCUSD downtrend to develop further | Credit: Nikola Lazic/TradingView
Key Fibonacci levels indicate potential support zones for Wave 4 completion. The 0.236 retracement at $93,756 provides initial support, but a deeper correction to the 0.382 level at $86,129 or even the 0.5 level at $79,965 could provide a stronger base for Wave 5.
RSI remains neutral, hinting at a lack of immediate momentum.
The bearish wedge pattern suggests Wave 4 may extend further downward before a bullish reversal.
Traders should observe the ABC structure for completion, signaling a potential buying opportunity for Wave 5.
Key Observations:
Wave 4 correction is progressing in an ABC structure.
Initial support lies at $93,756 (0.236 Fibonacci retracement).
Stronger support zones are $86,129 (0.382) and $79,965 (0.5 Fibonacci retracements).
Resistance for Wave B is at $96,000-$98,000.
Wave C completion could lead to a new bullish impulse.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis.
Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information.
