Bitcoin’s price dropped 7 percent to $100,544 after peaking at $108,277, entering a correction phase.
Experts identify $98,000 and $85,000 as places to watch before a possible surge toward $120,000-$135,000.
The next wave could bring major gains as BTC prepares for an upward move in the coming weeks.
Bitcoin has entered a correction phase, dropping 7 percent to trade near $100,544 after peaking at $108,277. This move aligns with the Wave 4 structure in the Elliott Wave analysis, which predicts a temporary retracement. Experts believe this correction sets the stage for a rally to $120,000 to $135,000 in the next impulse wave.
Source: Crypto Patel
The correction follows the conclusion of Wave 3, which had a strong upward momentum. The study now highlights the importance of specific support levels that could signal the end of this retracement. Traders are closely monitoring these levels to prepare for potential increases in the coming weeks.
Key Support Levels Offer Opportunities for Buyers
Bitcoin’s primary support sits at $98,000, which could act as a key level for price stabilization during this correction. A secondary support zone lies between $96,000 and $98,000, offering traders additional areas to watch for signs of recovery. Analysts stress the importance of these levels for those looking to make strategic entries.
Using Fibonacci retracement levels, experts also point to $90,048 as the 0.382 retracement, $85,063 as the 0.5 retracement, and $80,354 as the 0.618 retracement. These levels provide additional confirmation of where the correction might conclude. Many believe Bitcoin’s price could find a bottom between $85,000 and $80,000, making this range critical for future gains.
Wave 5 Could Propel Bitcoin to New Highs
The next phase, known as Wave 5, is projected to push Bitcoin’s price to new highs between $120,000 and $135,000. Analysts suggest the ongoing correction will build the necessary momentum for this rise, provided the current levels hold strong. Traders with short positions near $106,000 to $108,000 have already seen potential gains, while long-term investors are now waiting for stabilization.
This next wave could be one of the biggest rallies of the current cycle. Analysts are advising traders to time their entries carefully by waiting for signs of stability in the $85,000 to $80,000 range. This method allows them to maximize profits while minimizing risk in a volatile market.
The shallow correction in Wave 2 earlier this cycle reinforced bullish momentum, which many believe confirms the market’s broader upward trend.
Preparing for the Next Rally
The continuing correction is giving traders a window of opportunity to position themselves for BTC's next major upward move. Analysts recommend focusing on the $85,000 to $80,000 range as this is where stabilization could occur. Waiting for the economy to confirm a solid base is crucial before entering new positions.
Experts also emphasize the need for patience during this phase, as premature entries could lead to unnecessary risks. By monitoring the important support levels and retracement zones, traders can align their strategies with the upcoming rally.
The overall trend remains bullish, with BTC expected to resume its upward trajectory once the correction is complete. Understanding these levels and acting at the right time will be critical for traders who want to benefit from the next major value momentum.
