Bitcoin has produced an impressive price performance in the past two weeks, moving from around $85,000 to trade as high as $97,700. However, despite this recent bullish performance, the prospects of a long-term price uptrend in the BTC market remain unconfirmed. Currently, the premier cryptocurrency continues to trade in the $96,000 price range as the market continues to consolidate following the 4% price rally in the first two days of May.
Bitcoin Risk Falls To $50,000-$60,000 If Price Reclaim Fails
In an X post on May 3, a digital market expert with the X handle BALO has highlighted a necessary price condition needed for Bitcoin to retain its bullish market structure in the short term. Using the Elliott Wave Theory and Fibonacci extension/retracement levels, BALO highlights on the weekly BTC/USDT chart that Bitcoin has peaked around $97,000, which aligns with the top of wave 5.
The Elliott Wave Theory operates on the premise that price movement occurs in a recognizable repeating pattern. Generally, it consists of two phases – impulse phase (wave 1-5), which represents the current market trend, followed by the pullback phase, i.e., corrective phase (wave ABC).
After completing wave 5 of the impulse phase, prices generally slip into the pullback phase. Therefore, BALO’s analysis shows that Bitcoin is likely to enter a price correction following its most recent price rally.
However, this bearish prediction can be invalidated if Bitcoin reclaims its next price resistance at $102,000, thereby confirming a long-term bullish intent. If a price rejection occurs at $102,000, Wave A is expected to commence pushing BTC prices to around $70,000.
Thereafter, there will be a slight relief bounce to around $102,000, marking wave B before the last corrective wave (C) sets in, pulling Bitcoin prices as low as $50,000-$60,000. Interestingly, BALO predicts Bitcoin to re-enter a bullish market following this correction, with the potential to trade as high as $122,000.
BTC Price Prediction
At the time of writing, Bitcoin trades at $96,106, reflecting a price decline of 1.31% in the past day. Meanwhile, the asset’s daily trading volume is down by 38.19%, indicating a significant decline in market interest despite recent gains. According to data from Coincodex, the general sentiment in the Bitcoin market is bullish, with investors exhibiting a strong level of greed.
Amidst market conditions, Coincodex analysts predict Bitcoin to maintain its uptrend in the short term to hit a price of $119,528 in five days. However, they also expect a price correction followed by a larger price breakout as indicated by price targets of $111,747 in a month and $ 136,026 in three months.
Featured image from Pexels, chart from Tradingview
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