A popular cryptocurrency analyst has suggested that the price of the flagship cryptocurrency Bitcoin (BTC) still has room to grow, despite the cryptocurrency’s recent drop below the $36,000 mark as US inflation data eased pressure on the Federal Reserve.
In a video shared with their over 350,000 followers on the microblogging platform X (formerly known as Twitter), analyst Credible Crypto noted that Bitcoin might be in the later stages of a corrective wave four, pointing to its recent correction and the formation of an ascending triangle pattern on the lower time frame as part of the wave’s structure.
Per his words ascending triangles are “often found in wave fours” that look like the asset is starting to consolidate, before the asset’s price moves upward.
In the 1920s, Ralph Nelson Elliott formulated the Elliott Wave theory, a concept that emerged from his observation and identification of “recurring, fractal wave patterns.” These patterns are grounded in psychology of the masses, and the interpretation of the Elliott Wave theory typically involves five waves that move in line with the primary market trend, which could be either bullish or bearish, and by three corrective waves.
The theory posits that these patterns repeat themselves, enabling the prediction of asset price movements. Elliott’s theory gained prominence when he accurately forecasted the stock market’s bottom in 1935 following a 13-month correction.
Credible Crypto’s BTC price chart shows that a break above the $38,000 level would lead to the end of wave four and allow the cryptocurrency’s price to keep rising to the $44,000 mark. Addressing the recent pullback, the analyst noted a substantial decrease in Bitcoin open interest, representing outstanding BTC futures contracts. He sees this reduction in leverage as a positive development, positioning Bitcoin for an upward movement
Bitcoin whales, however, appear to be somewhat bearish, as data shows that these large holders have been realizing their profits over the past week after redistributing around 60,000 BTC worth around $2.22 billion, after a 30-day rise of 34.8% for the cryptocurrency.
Featured image via Unsplash.