Bitcoin price has shown no overall gains over the past week as the top cryptocurrency continues to experience a market correction. Despite several bullish gains, Bitcoin has struggled to break the $100,000 resistance as its price performance in December continues to deviate from previous bullish forecasts. Amid these developments, market analysts continue to release predictions about Bitcoin’s potential price movements.
Is Bitcoin Price Peaking?
In a post on December 27, More Crypto Online, which analyzes crypto technology, shared an interesting prediction about the current state of Bitcoin’s correction. These market analysts used Elliott Wave Theory to draft two conflicting predictions for the BTC market, called the yellow and white scenarios.
For context, Elliott Wave Theory is a form of technical analysis based on the belief that financial markets move in repeating fractal patterns, called waves, that can be used to predict future price movements. With Bitcoin currently in a correction structure, i.e. moving against a bullish market trend, the white scenario states that Bitcoin completed Wave B, hitting a local price high on December 26th.
The top cryptocurrency is currently moving in a C wave towards a potential price target in the low-to-mid $80,000 price range. The original support zone to counter this bearish move is around $95,068 – $96,670. However, as Bitcoin hits new lows, these resistance areas will likely recalibrate.
On the other hand, the yellow scenario shows that the B wave that ended in the white scenario is developing as part of a larger correction structure, without yet hitting a high. However, for this yellow scenario to be valid, BTC would need to break above $96,673, which would indicate that the upward movement is still underway. Therefore, unless this price range is broken, the white scenario remains the dominant outlook for the Bitcoin market.
BTC price overview
As of this writing, Bitcoin is trading at $94,790, down 1.04% in the last 24 hours. Meanwhile, daily trading volume increased 10.35%, reaching $52.24 billion. After a week of almost balanced gains and losses, the leading cryptocurrency fell 2.00%, with its monthly performance also falling into negative territory.
For market bulls, a move above $96,600 remains an immediate challenge based on Elliott Wave Theory, but a major opposition awaits at $100,000, which has recently proven effective resistance. Optimism continues to remain high in the Bitcoin market in general, especially with the inauguration of US President-elect Donald Trump rapidly approaching, which is expected to herald a new era of cryptocurrency-friendly policies.
Source: NewsBTC.com