Bitcoin’s Crucial Challenge to Regain $102,000: Here’s the Reason Behind It
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Bitcoin has exhibited remarkable price movements over the last two weeks, rising from approximately $85,000 to a peak of $97,700. However, the long-term outlook for a sustained price increase in the BTC market remains uncertain. Currently, the leading cryptocurrency trades within the $96,000 range as the market undergoes consolidation following a 4% price increase during the initial days of May.
Bitcoin Risk Lowers To $50,000-$60,000 If Price Recovery Fails
In a post on X dated May 3, digital market expert BALO emphasized a crucial price level Bitcoin must reclaim to maintain its bullish market structure in the near term. Employing the Elliott Wave Theory along with Fibonacci extension/retracement levels, BALO notes on the weekly BTC/USDT chart that Bitcoin’s peak around $97,000 coincides with the top of wave 5.
The Elliott Wave Theory is based on the idea that price movements occur in recognizable, repeating patterns. It typically consists of two main phases: the impulse phase (waves 1-5), which reflects the current market trend, followed by a pullback or corrective phase (waves ABC).
Upon completing wave 5 of the impulse phase, prices often transition into the corrective phase. Thus, BALO’s analysis suggests that Bitcoin is likely to experience a price correction following its recent rally.
Nonetheless, this bearish outlook could be invalidated if Bitcoin reclaims the critical resistance at $102,000, confirming long-term bullish intentions. If Bitcoin faces rejection at this level, Wave A is anticipated to initiate, moving BTC prices down toward $70,000.
Subsequently, a brief relief rally to around $102,000 is expected, marking wave B before the concluding corrective wave (C) potentially pulls Bitcoin prices down to the $50,000-$60,000 range. Interestingly, BALO predicts that Bitcoin may re-enter a bullish phase following this correction, with the potential to reach $122,000.
BTC Price Forecast
At present, Bitcoin is trading at $96,106, reflecting a 1.31% decrease in the last 24 hours. Meanwhile, the asset’s daily trading volume has fallen by 38.19%, indicating a significant reduction in market interest despite earlier gains. Data from Coincodex suggests that sentiment in the Bitcoin market remains bullish, with investors displaying strong greed.
Amid the current market conditions, analysts from Coincodex project that Bitcoin will likely continue its upward trend in the near term, reaching around $119,528 in five days. However, they also anticipate a subsequent price correction, followed by a larger breakout with targets of $111,747 in one month and $136,026 in three months.
BTC trading at $96,010 on the daily chart | Source: BTCUSDT chart on Tradingview.com
Featured image from Pexels, chart from Tradingview
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