Jan 19, 2023 at 05:27Bitcoin is having a hard time staying above $20,000 per BTC. Not many expected it to reach this high in the first place.
Bitcoin’s next move might surprise us, but math and the ‘Elliott Wave Theory’ say it could reach a high of $161,800 sooner than we think.
The Elliott Wave Theory
A man named Ralph Nelson Elliott came up with a way to study the stock market back in the 1930s. It’s called the Elliott Wave Theory. Some people think it can help explain what’s happening with Bitcoin today.
According to the theory, the market has five movements that make up a symphony, each one with its unique rhythm and melody. Three of the steps (1,3,5) go with the trend, and the other two (2,4) go against it. This theory can help predict when the market will change direction.
The Fibonacci Theory
Fibonacci numbers have also helped traders to figure out the best time and place to buy or sell. They are like a secret code, with each number building on the previous one. It starts with 0 and 1, and each new number is the sum of the last two: 0, 1, 1, 2, 3, 5, 8, 13, 21, and so on.
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With the help of a special chart called the BTC CME Futures, it’s possible to decode the melody of the market, using the Elliott Wave theory to predict the next big move of Bitcoin.
And, with the use of the Fibonacci extension target, the code-breakers can even project the end of the current bullish cycle.
It all adds up
According to the ancient Fibonacci sequence, Bitcoin could reach $161,800 per BTC. What’s fascinating is that this prediction is closely linked to the golden ratio, a number that has been revered for centuries.
Back in 2021, Bitcoin reached this golden ratio target as predicted by the Fibonacci extensions when analyzed on the BTC CME chart. It’s a journey from the beginning of the chart till the bear market bottom of 2018.
The prediction assumes that Bitcoin has finished “wave four expanded flat” and has moved on to “wave five impulse.” This next stage is like a powerful surge, and it can go in two ways: it can either be as strong and long as the first stage or even stronger and longer, like the third stage.
According to CoinmarketCap, Bitcocin is at a thrilling $20,844.86 USD.
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