Since reaching a local bottom of $74,000 in mid-April, Bitcoin has experienced a notable market rebound, leading to a price uptrend that has persisted over the last three weeks. Importantly, the premier cryptocurrency crossed the $100,000 threshold in the previous week, trading as high as $104,300. Following this remarkable achievement, market analysis platform NewThoughtCrypto has provided a technical insight into Bitcoin’s potential next moves.
Bitcoin Macro Outlook Shows Charge To New ATH But A Market Correction Awaits
In a recent X post, analysts from NewThoughtCrypto shared a macro and micro forecast of the Bitcoin market, utilizing the Elliott Wave Theory. Their assessment indicates that Bitcoin’s rise to $104,300 represents the conclusion of the fifth wave in an impulse phase, suggesting an impending market correction.
For context, the Elliott Wave Theory suggests that prices fluctuate in two main repeating patterns: the impulse phase, characterized by five waves (i-v), and the corrective phase, which comprises waves A-B-C.
According to NewThoughtCrypto analysts, having completed wave V of the impulse trend, Bitcoin is projected to undergo a market correction. Historical data indicates that the target range for such corrections typically falls around the 0.5 and 0.618 Fibonacci retracement levels. By considering the recent top of $104,300, we might anticipate a price correction leading Bitcoin’s value down to between $86,000 and $89,000, aligning with wave C of the corrective trend.
Interestingly, there is potential for Bitcoin to resume its bullish momentum before the correction reaches its conclusion, given that a price bounce is likely aligned with wave B of the corrective phase. Nonetheless, experts at NewThoughtCrypto forecast a complete correction prior to any significant efforts from the flagship cryptocurrency to reclaim its charge towards a new all-time high, which they predict could occur this summer.
Micro Outlook Hints At $106,000 Target Before Correction
On a micro level, examining the Bitcoin market through a 4-hour chart, NewThoughtCrypto analysts report that Bitcoin seems to have successfully completed waves I, II, and III, with wave III exceeding market expectations.
The cryptocurrency is now poised for wave IV, which is traditionally a corrective wave. Following the wave III peak at $104,300, the anticipated market correction may draw prices down to between $100,000 and $101,000. After this, a bullish wave V is expected to commence, with targets aiming toward $106,000 before the onset of further corrective trends.
As of the latest updates, Bitcoin is trading at $102,810, reflecting a 0.06% increase over the past day. However, it should be noted that daily trading volume has decreased by 6.68%, now valued at approximately $62.23 billion.
