Bitcoin is approaching the final stages of a major bullish Elliott Wave cycle, presenting both opportunities and risks for traders and investors. Let’s explore the key insights you need to know to navigate this phase effectively.
📈 The Importance of Long-Term Trendlines (2017 - 2021)
One of the most important factors when analyzing Bitcoin price movements is the long-term trendline established from 2017 to 2021. This trendline acts as a dynamic resistance level that moves with the price over time.
👉 Why this matters: When Bitcoin touches this trend line again, it could signal a major reversal. It is highly recommended to set up alerts for this trend line in tools like TradingView. This will ensure you don’t miss the opportunity to exit your position when Bitcoin is likely to top.
🔑 The Role of Fibonacci Extensions
Another important resistance level to watch is the 1.618 Fibonacci extension level. Unlike trend lines, Fibonacci extensions are static levels. The key price point to watch is? 122.069 USDT.
👉 Why this level matters: The combination of a dynamic resistance trendline and a static Fibonacci resistance line creates a strong confluence zone, signaling a potential top for Bitcoin's current bull cycle.
🚨 Market Reality: Why $200,000 or $300,000 Predictions Are Unrealistic
While some “moon boys” in the crypto space may predict Bitcoin will hit $200,000 or $300,000 by 2025, these predictions ignore important market dynamics:
High Market Cap: Bitcoin's current valuation makes such extreme moves unlikely in a short period of time.
Historical Pattern: Previous Bitcoin cycles have shown that periods of extreme growth are often followed by significant corrections.
⏬ Prepare for a bear market (2025-2026)
As Bitcoin tops out and the market enters a bear phase, we can expect a significant correction. The support zone is likely to be between $50k - $65k, which matches the support level of wave (4) from the Elliott Wave perspective.
👉 Liquidity Zone: Wave (4) is often the strong point where whales accumulate, making this an ideal area for long-term accumulation after a bear market begins.
🛠 Action Plan for Traders
Set Alerts: Monitor the 2017-2021 trendline and the $122,069 Fibonacci level using tools like TradingView.
Exit Strategy: Plan to sell when Bitcoin approaches these resistance zones.
Correction Waiting: Accumulate in 2025-2026 bear market in the $50,000-65,000 range.
Avoid Over-Optimism: Be realistic about market capitalization and avoid getting caught up in overly optimistic predictions.
💬 Let's talk about Altcoins!
Do you have any altcoins you want to analyze? Leave the name of it in the comments and I will provide a detailed analysis just for you.
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