Pseudonymous Bitcoin BTC/USD analyst Decode provided a technical analysis of Bitcoin’s current performance, which suggests $100,000 may be on the table until the end of the cycle.
What Happened: Decode’s analysis is based on the Elliott Wave theory, which doesn't directly correlate with Bitcoin's halving cycles or any other specific intervals but represents the market sentiment resulting from these factors.
Four primary waves have been completed and the fifth is expected to be completed soon. This suggests Bitcoin is heading into a major blow-off top shortly.
If Bitcoin closes the weekly candle above $56,522, no further downside is expected. If it fails to do so, a drop to the low $50,000s may be possible.
Decode believes that Bitcoin could reach $100,000 or even higher before the cycle ends, as it is currently moving up in a clean log channel, with the recent drop tapping the lower boundary.
Also Read: Bitcoin’s Performance For The Rest Of 2024 Hinges On This Historical Pattern
Bitcoin's weekly candle did not close above the April lows of $56,500, increasing the possibility of further downside.
Decode believes that around $55,000 is a good spot for Bitcoin to hold, as it represents a strong support that is rarely broken in a bull market. It is the 38.2% retrace of the last impulse, a strong support that is rarely broken in a bull market.
Around $50,000, a 50% retrace and a break of the trend channel, would be the worst case, though the analyst expects a buy wall to support price at this price point.
Price Action: In the last 24 hours, BTC down 2% to $56,200, taking its seven-day losses to 11%.
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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