According to Bitcoin Elliott Wave Theory, the price of BTC could fall to $25.5K this year

As Bitcoin fell below $35,000, the Elliot Wave Theory’s gloomy forecast became apparent.

According to the “Elliott Wave Theory,” a nearly century-old technical analysis approach, the current Bitcoin (BTC) price decline could continue.

As Bitcoin fell below $35,000 amid the Russia-Ukraine war, the Elliot Wave Theory issued an intermediate pessimistic forecast.

Repetition of Bitcoin wave fractal eyeballs

According to the theory, which divides a price cycle into two sets—one with five upward-trending impulse waves and the other with three follow-up corrective waves price BTC’s might plummet to $25,500 in 2022.

Its pessimistic forecast is based on its track record of correctly anticipating cyclical tops and bottoms in the Bitcoin market, as demonstrated in the figure below.

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Three basic impulse waves (1, 3, and 5 in red) and two corrective waves can be seen on the Bitcoin chart (2 and 4 in red). The fifth wave is still in the works, indicating that BTC has the potential to surpass $100,000 in the future. These five waves, however, collectively form an upward structure that will most likely exhaust at wave 5 and be followed by three corrective waves: A, B, and C.

Meanwhile, each huge wave shown in red is made up of sub-waves, each of which includes a five-wave advance (impulse) in the direction of a one-degree trend (from 1 to 5 in black), followed by a three-wave corrective against the higher-degree trend (from a to c in blue).

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Bitcoin’s price has frequently climbed between waves 1 and 5 between 2012 and 2018, followed by a correction from wave a to wave c. Whether it was in 2015 or 2018, wave c, which corresponded with Bitcoin’s 200-week exponential moving average (50-week EMA), signaled BTC’s price bottom and the end of the so-called Elliott Wave Cycle.

Bitcoin launched a new Elliott Wave Cycle after 2018. It has already completed the five-wave advance, rising from roughly $3,200 in December 2018 to around $69,000 in November 2021, and is now in the middle of its three-wave corrective, anticipating the development of its final wave c.

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Given that the next wave c occurs around the 200-day EMA, BTC may reach values of roughly $25,500.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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