The price of Bitcoin is struggling to keep above $20,000 per coin – a level that some expected the top cryptocurrency to trade in ever again after passing the first key resistance.
In recent predictions, the next target for BTCUSD may reach a level that is too low at this time to be considered or desired. But, age-old mathematics and Elliott Wave Theory can suggest the next cycle may peak sooner than you would believe – and at a price of $161,800 per coin.
Finding Price Targets With Fibonacci’s Mysterious Power
Cryptocurrency traders generally use Fibonacci retracements and extensions to make decisions about where and when to buy or sell. It is not known why prices tend to approach this level, but this ratio is found around the world.
For example, Venus orbits the sun in 224.6 days, while Earth orbits in 365.2 days. This makes the ratio 8/13 – two Fibonacci numbers – which is approximately 0.618. This is why the golden ratio is also called the divine proportion. It was almost magical.
The Fib ratio comes from the Fibonacci sequence – a series of numbers where the next number in the sequence is the sum of the previous two numbers. The order is 0, 1, 1, 2, 3, 5, 8, 13, 21, etc.
Although the sequence is named after a famous Italian mathematician, its use dates back to 200BC Indian mathematics. Simply put, this is about the antiquity of mathematics.
BTC hits the 1,618 Fibonacci extension several times during the cycle | CME-BTC! on TradingView.com
Examining Market Cycles With Elliott Wave Theory
Ralph Nelson Elliott developed the Elliott Wave Theory in the 1930s, but his research may be the key to understanding what happened to Bitcoin.
Elliott Wave Theory believes that the market cycle moves in five main waves, with waves one, three, and five moving with the trend, and waves two and four moving as a corrective phase.
The relationship with Fibonacci is everywhere in the Elliot Wave Theory. The upward impulse wave tends to fizzle out at the Fib extension, while the correction ends at the Fibonacci retracement and extension levels.
A five-wave motif completes one cycle in five individual waves with three impulses and two corrections. A complete Elliott Wave sequence consists of 21 movements and there are 21 corrective patterns. Each number is a Fibonacci number.
Bitcoin's fifth wave might be about to begin | CME-BTC! on TradingView.com
Why Bitcoin Can Reach $161,800 Per Coin
With all that background, we can focus on the price of Bitcoin. As a speculative asset, it is particularly susceptible to emotional price movements, being particularly responsive to the Fibonacci ratio and Elliott Wave Theory.
Using the BTC CME Futures chart, you can calculate the ongoing Bitcoin Elliott Wave motif wave. If the wave count is accurate, it is possible to project the last possible wave motive and bullish cycle using the Fibonacci extension target.
Bitcoin price could reach the 1,618 Fibonacci extension, which is about $161,800 per BTC. Interestingly, if you multiply $100K by the golden ratio, you get $161,800. The top cryptocurrency touched the golden ratio target at the peak of 2021 when the Fibonacci extension was pulled from the CME BTC chart open to the bottom of the 2018 bear market.
The target depends on the price of Bitcoin that has completed the fourth wave of a flat correction and started a wave of five impulses. While wave five tends to match wave one in magnitude and strength, it can also mimic wave three – which tends to be the longest and strongest.
In Search Of Confirming Cycles In Crypto
In the video above, Tony “The Bull” walks step-by-step through each wave in Bitcoin and uses a textbook Elliott Wave example to explain how price action can evolve.
In an exclusive in-depth analysis, each wave ends at a key Fibonacci level, starting from the beginning of the Bitcoin bear market. Using channeling techniques to project the peak of the next cycle, it is possible that a bold target can be reached within six months to a year.
Finally, the cyclical nature of BTC can be confirmed using the Hurst Cycle Theory, which suggests a near-perfect cyclical rhythm of bottoming since 2015. Each major bottom also occurs in a logarithmic buy zone and each cycle top in a sell zone.
The Fisher transformation is then used to confirm the presence of another important turning point in BTCUSD – and possibly the last bullish impulse before the cycle comes and goes.
As an Elliott Wave partner, I can share access to the Global Market State FREE report (normally $263) from Elliott Wave International: https://t.co/FEfEGiej72
This 19 day event includes a new report every 2 days & 50+ predictions on #Bitcoingold, stocks, oil, bonds, etc. pic.twitter.com/ZU9JmbSMft
– Tony “The Bull” Spilotro (@tonyspilotroBTC) January 19, 2023