Bitcoin Analyst Suggests Price Has Room to Grow
A popular cryptocurrency analyst believes that the price of Bitcoin still has room to grow despite the recent drop below $36,000. The drop came as US inflation data eased pressure on the Federal Reserve. The analyst, Credible Crypto, shared a video with over 350,000 followers on Twitter, noting that Bitcoin might be in the later stages of a corrective wave four. This is evidenced by its recent correction and the formation of an ascending triangle pattern on a lower time frame.
The Elliott Wave Theory
Ralph Nelson Elliott formulated the Elliott Wave theory in the 1920s. This concept emerged from his observation and identification of recurring, fractal wave patterns grounded in psychology. The theory involves five waves that move in line with the primary market trend and three corrective waves. These patterns repeat themselves, enabling the prediction of asset price movements.
Credible Crypto’s Analysis
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 $44,000. Despite a recent pullback, he 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 and Market Data
Bitcoin whales appear somewhat bearish as data shows they 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.
Hot Take: Bitcoin’s Future Potential
Despite recent fluctuations and whale activity, Credible Crypto’s analysis suggests that Bitcoin’s price still has room to grow based on technical indicators and market trends.
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