Originally written by Scott Matherson. Source: NewsBTC
Elliott Wave Analysis and Bitcoin's Price Trajectory
A technical analyst known as ‘V’ recently shared compelling insights using Elliott Wave Theory to forecast Bitcoin's price movements, highlighting a potential dip followed by a significant rally. This analysis, plotted on Bitcoin’s weekly chart, outlines a possible multi-year roadmap that could see BTC first drop substantially to around $40,000 before a future surge.
Anticipated Bitcoin Correction: Wave 2
According to V’s Elliott Wave interpretation, Bitcoin has completed a five-wave impulse move from its 2022 lows reaching a peak near $109,354 in early 2025. These waves are labeled 1 through 5, marking the end of the first major bullish phase.
Following this, the next stage is expected to be a Wave 2 correction, potentially unfolding as an ABC zigzag:
- Wave A: A decline targeting between the 50% and 61.8% Fibonacci retracement levels — around $51,000 to $62,000.
- Wave B: A relief bounce pushing Bitcoin back up to the 100% to 132% extension zone, approximately $109,354 to $120,594.
- Wave C: A final downturn forecasted to bottom between $51,336 and $35,564, representing a significant 55% to 69% drop from the prior bounce area.
This correction phase could potentially mislead investors, as the intermediate Wave B rally might mimic a bullish recovery, luring market participants before an additional drop in Wave C — a classic bull trap scenario.
The Bullish Wave 3 and the Path to New Highs
After the correction is complete, V projects a powerful Wave 3 bullish phase to commence. Bitcoin may retest and reclaim previous resistance around $109,354, marking a surge of over 207% from the Wave C low near $35,564.
Beyond this, the forecast indicates a move toward $150,000 — a level unseen since Bitcoin's historic highs in October 2025 exceeding $126,000. This phase could signal a new all-time high, reflecting strong market momentum.
Industry Context and Practical Insights
Such advanced market forecasting underscores the complexity and dynamic nature of cryptocurrency markets. For developers and tech entrepreneurs interested in crypto infrastructure, understanding these price patterns can be valuable when planning investments or infrastructure expansions.
For example, organizations like OneMiners provide tailored crypto mining hardware and hosting solutions that benefit from forecasting of price cycles, optimizing mining operations accordingly.
Similarly, IceRiver.eu offers advanced ASIC miner services focused on European markets, where timing infrastructure deployment with market cycles can impact profitability.
Discussion
What is your take on Elliott Wave Theory as it applies to cryptocurrency markets? Do you use technical analysis in your projects or investments? Share your experiences and insights below!
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