Despite Bitcoin’s 13% drop last week, which saw it break below the psychological $60,000 level and fall 20% from its all-time highs, one X analyst remains resolute.
According to the weekly chart, the trader maintains a bullish outlook and says that the coin will shake off weakness in the next session. This lines up with the bulls for most of Q4 2023 and Q1 2024.
Bitcoin falls and loses $60,000
Bitcoin is under intense sell-off pressure, fighting the onslaught of sellers. Earlier today, BTC broke below $60,000, melting below its April 2024 lows.
This dump confirmed the bears from April 13, indicating a possible start of a bearish formation that could see BTC lose ground, paring February and March 2024 gains.
However, the analyst claims that the bullish trend will continue as long as Bitcoin stays above the $49,000-$52,000 support zone, absorbing all the selling pressure. This evaluation, based on the candle arrangement, can serve as collateral for BTC holders. The trader claims that, despite the sell-off, panic at this time is not justified.
Referring to the Elliott Wave Principle, a technical analysis indicator, the analyst highlights that the currency is simply on pause. For those with a more aggressive trading strategy, the decline, ideally towards the upper support zone, could represent an opportunity to buy dips in anticipation of Wave 5.
Currently, the analyst notes that Bitcoin is in Wave 4, a stage that will take approximately the same time as Wave 2. Prices then fell after a brief rally, peaking in May 2023. However, the Prices rose in Wave 3, pushing prices below $30,000. . to new all-time highs, reaching $73,800.
The decline from all-time highs in spot rates, if the Elliot wave theory is analyzed, could indicate that prices are in the fourth wave before the eventual rise, which will end in the fifth wave.
What is next? Will BTC surpass $100,000 in the fifth wave?
Even so, it is still unknown when BTC will go from bottom to top. As things stand, the analyst said traders should watch two exponential moving averages (EMAs) of the 21 and 50 periods. A retest of these dynamic levels could offer support, preparing traders to buy dips in anticipation of the Wave 5 final.
However, the analyst did not define the next possible target even on the chart. Still, if Wave 3 is roughly the same duration as Wave 5, Bitcoin will have a strong chance of breaking above $100,000 after the current volatile price action ends.