Bitcoin (BTC) may gain another 50% before a massive selloff to end its bear market, new research predicts.
In the latest edition of the regular market newsletter “Crypto Circular”, trading firm QCP Capital delivered a grim warning to those who believe the crypto winter is over.
Research Warns of ‘Last Wave 5 Sell-Off’
Bitcoin surprised by holding new support levels that were unexpectedly reclaimed in its weekly bull run reaching $21,650 so far.
Despite widespread suspicion of a “choreographed” move, BTC/USD has nonetheless regained key trend lines and psychological price points.
There’s still enough fuel for QCP to send us a few higher, but that still doesn’t mean the overall bear market is done and dusted.
In an update to its long-term price analysis, Elliott Wave claimed that the current rally represents a wave 4 for Bitcoin – essentially a bear market relief.
“Make no mistake, what we are seeing now in risk markets is characteristic of Wave 4,” he wrote.
“We maintain our view that this bounce is the lowest since November 2022, it’s just a wave 4 correction, and we have a final wave 5 selloff ahead of us.”
“The extension we currently see in 2023 falls within the parameters of Wave 4, although it has broken some short-term technical levels higher, adding to the upside momentum,” the reporter continued.
Elliott Wave Theory states that the 20%, 38.2% and 50% Fibonacci retracement levels are particularly important in Wave 4. As Bitcoin has already corrected almost 20% from recent macro lows, two remaining price targets are now in play: $27,100 and $31,850.
“Technically, until these levels are broken, wave 4 is still in play and a final wave 5 for these markets breaking the lows should not be ruled out,” QCP said.
“Without a doubt, the pain business is lower now.
WEF accompanies BTC price action rebound
Like Cointelegraph reportedBitcoin has traded its “up only” trading behavior for some much needed consolidation in recent days.
This was helped by the panic directed at the United States remove crypto exchange Bitzlato, it comes in the middle new regulatory concerns via Bitcoins from World Economic Forum participants, is now underway in Davos, Switzerland.
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