Bitcoin Will Reach $161,800 Soon
Bitcoin To Reach $161,800, According To Fibonacci Extension, Elliott Wave Theory
Bitcoin price is struggling to maintain above $20,000 per coin — a level that few expected the top cryptocurrency to trade at ever again once it passed the key resistance the first time.
In a new prediction, the next target for BTCUSD might also reach a level that very few at this point would consider or expect. However, ages-old mathematics and Elliott Wave Theory could suggest the next cycle may possibly peak much sooner than many would believe — and at a price of $161,800 per coin.
Why Bitcoin Could Reach $161,800 Per Coin
Now that history is out of the way, we can concentrate on the price of bitcoin. As a speculative asset, it is particularly vulnerable to emotion-driven price changes, making Fibonacci ratios and Elliott Wave Theory particularly useful.
It is feasible to identify an active Bitcoin Elliott Wave motive wave using the BTC CME Futures chart. A Fibonacci extension target can be used to project a potential end to the motive wave and bullish cycle if the wave count is correct.
Bitcoin price could reach the 1.618 Fibonacci extension, which is roughly $161,800 per BTC. Interestingly, if you multiply $100K by the golden ratio, you’ll get $161,800. The top cryptocurrency touched the golden ratio target at the 2021 peak when Fibonacci extensions are drawn from the very open of the BTC CME chart to the 2018 bear market bottom.
The target is contingent on Bitcoin price having ended its wave four expanded flat correction and started its wave five impulse. While wave fives tend to match wave one in magnitude and strength, they can also mimic wave three — which tends to be the longest and strongest.
In Search Of Cyclical Confirmation In Crypto
In the video above, Tony “The Bull” walks step-by-step through each wave count in Bitcoin and uses textbook Elliott Wave examples to explain how the price action could develop.
In the exclusive in-depth analysis, each wave terminates at a key Fibonacci level, dating back to the beginning of the Bitcoin bear market. Using a channeling technique to project the next cycle peak, it is possible that the bold target is reached within the next six months to a year.
Finally, the cyclical nature of BTC is possibly further confirmed using Hurst Cycle Theory, which suggests a near-perfect cyclical rhythm of bottoming since 2015. Each major bottom also took place within a logarithmic buy zone and each cyclical top in its sell zone.
The Fisher Transform is then used to possibly provide confirmation of the presence of yet another significant turning point in BTCUSD — and possibly the last bullish impulse before the cycle comes to and end.
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— Tony "The Bull" (@tonythebullBTC) January 19, 2023
Finding Price Targets With The Mysterious Power Of Fibonacci
When deciding where and when to purchase or sell a cryptocurrency, traders frequently employ Fibonacci retracements and extensions. Although the ratios are prevalent in nature, it is unknown why prices tend to drift toward these ratios.
For instance, compared to Earth, Venus rounds the sun in 224.6 days as opposed to 365.2 days. This yields an 8/13 ratio, which is around 0.618 and contains both Fibonacci numbers. The golden ratio is sometimes known as the divine proportion for just this reason. It almost seems miraculous.
Market Cycle Analysis Using Elliott Wave Theory
Elliott Wave Theory was created by Ralph Nelson Elliott in the 1930s, but the research may hold the key to understanding what is happening with Bitcoin.
According to the Elliott Wave Theory, market cycles are made up of five main waves, with waves one, three, and five following the trend and waves two and four acting as corrective phases.
Examining Market Cycles With Elliott Wave Theory
Ralph Nelson Elliott developed Elliott Wave Theory in the 1930s, yet the study could be the key to figuring out what’s going on with Bitcoin.
Elliott Wave Theory believes that market cycles move in five primary waves, with waves one, three, and five moving with the trend, and waves two and four moving against it as corrective phases.
Relationships with Fibonacci are everywhere in Elliot Wave Theory. Impulse waves up tend to fizzle out at Fib extensions, while corrections terminate at Fibonacci retracement levels and extensions.
A five-wave motive wave completes one cycle in five individual waves with three impulses and two corrections. A complete Elliott Wave sequence consists of 21 movements and there are 21 total corrective patterns. Each of the numbers is a Fibonacci number.
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