16 October 2024
According to a technical analysis from analyst Xanrox, the Bitcoin price is on the road to reaching the $130,000 mark in the next few months. Notably, this bullish price target might go unnoticed as one of many positive predictions that have surrounded the Bitcoin price in recent times. However, Xanrox’s prediction is intriguing as it also comes with a bearish outlook after the price target is fulfilled.
To support his forecast, Xanrox relied on a combination of Fibonacci extensions and Elliott impulse waves, two of the most popular analysis tools. Together, these tools allowed Xanrox to not only pinpoint a journey to the $130,000 target but also a sharp retracement to $60,000,
Bitcoin Price Roadmap To $130,000
Taking to TradingView to share his views, crypto analyst Xanrox highlighted that the Bitcoin price is now on its way to playing out the fifth Elliot impulse wave, having already completed the fourth impulse wave in August.
Impulse waves, which are five in total, are a part of the two main types of waves in the Elliot Wave theory, with the other being corrective waves. An impulse wave is a strong, directional movement in the market that goes in the direction of the overall trend. These waves are divided into five sub-waves, labeled 1 one through 5. The odd-numbered waves (1, 3, and 5) represent the driving forces behind the trend, while the even-numbered waves (2 and 4) are periods of consolidation that provide a pause before the next leg of the trend.
According to Xanrox’s analysis, Bitcoin officially kicked off Wave 5 after it hit a correction low of $49,000 in August. This marked the end of Wave 4, which had acted as a consolidation period following the dramatic rally seen during Wave 3, with the Bitcoin price reaching a new all-time high. Now, with the final impulse wave underway, the focus has shifted to how high Bitcoin might climb.
To predict the potential peak of Wave 5, Xanrox employed Fibonacci extensions. Interestingly, when the Fibonacci extension is applied from the Wave 4 low, the 0.618 Fib extension aligns perfectly with a major trendline that has marked the peaks of both Wave 1 and Wave 3.
As such, this suggests that the 0.618 Fib extension could play a pivotal role in the next phase of Bitcoin’s price action. At the point of this intersection lies a price target of $130,000, which represents a significant 100% increase from the current levels.
What Next After $130,000?
Xanrox’s outlook doesn’t end with just a bullish price target. The analyst also cautioned and highlighted the possibility of a sharp reversal after Bitcoin reaches its fifth-wave peak. Drawing on patterns, he noted that Bitcoin’s previous waves have experienced significant corrections between 70% and 80% once the impulse wave cycle concludes.
For this reason, Xanrox predicted that Bitcoin could crash rapidly to $60,000 after reaching $130,000, likely by January 2025.