A technical analysis conducted by analyst Xanrox suggests that Bitcoin’s price is heading towards the $130,000 milestone in the coming months. Importantly, this optimistic price projection may be overlooked as just one of several favorable forecasts surrounding Bitcoin’s value in recent times. Nevertheless, Xanrox’s prediction stands out due to its accompanying bearish outlook following the achievement of this price target.
To substantiate his prediction, Xanrox utilized a blend of Fibonacci extensions and Elliott impulse waves, which are two of the most prevalent analysis tools. These methodologies enabled Xanrox to not only identify a path towards the $130,000 goal but also anticipate a notable retracement to $60,000,
Bitcoin Price Journey to $130,000
Taking to TradingView, crypto analyst Xanrox pointed out that Bitcoin’s price is currently in the process of executing the fifth Elliott impulse wave, having finished the fourth impulse wave in August.
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Impulse waves, which total five, are part of the two primary wave categories in Elliott Wave theory, alongside corrective waves. An impulse wave indicates a strong, directional market movement that aligns with the overall trend. These waves are subdivided into five sub-waves, labeled 1 through 5. The odd-numbered waves (1, 3, and 5) signify the forces propelling the trend, while the even-numbered waves (2 and 4) represent periods of consolidation that act as pauses before the next phase of the trend.
Based on Xanrox’s analysis, Bitcoin officially commenced Wave 5 after hitting a correction low of $49,000 in August. This event concluded Wave 4, which served as a consolidation phase after the dramatic surge seen during Wave 3, when Bitcoin reached a new all-time high. With the final impulse wave now in motion, attention has shifted to how much further Bitcoin may rise.
To estimate the possible peak of Wave 5, Xanrox applied Fibonacci extensions. Notably, when the Fibonacci extension is calculated from the Wave 4 low, the 0.618 Fib extension aligns precisely with a significant trendline that has defined the peaks of both Wave 1 and Wave 3.
Therefore, this implies that the 0.618 Fib extension could play a crucial role in the next phase of Bitcoin’s price journey. At the intersection of this analysis lies a price target of $130,000, representing a substantial 100% rise from the current levels.
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What Comes After $130,000?
Xanrox’s perspective doesn’t conclude with merely a bullish price target. The analyst also warned about the potential for a rapid reversal once Bitcoin reaches its fifth-wave apex. Citing historical patterns, he noted that Bitcoin’s past waves have undergone notable corrections ranging from 70% to 80% once the impulse wave cycle comes to an end.
Because of this, Xanrox foresees that Bitcoin could rapidly decline to $60,000 following its rise to $130,000, likely by January 2025.
Featured image created with Dall.E, chart from Tradingview.com
