The price of Bitcoin saw no overall gain over the past week as the premier cryptocurrency continued to undergo a market correction. Despite multiple upward movements, Bitcoin struggled to break past the $100,000 resistance with its price performance in December continuing to deviate from earlier bullish predictions. Amidst this development, market analysts continue to roll out projections on Bitcoin’s potential price move.
Is Bitcoin Price Top In?
In an X post on December 27, crypto technical analysis handle More Crypto Online shared an interesting prediction on Bitcoin in its current corrective state. Using the Elliott Wave Theory, these market analysts have drafted two opposing forecasts on the BTC market named the yellow and white scenarios.
For context, the Elliott Wave Theory is a form of technical analysis that hinges on the belief that the financial market moves in repetitive fractal patterns called waves that can be used to predict future price movements. With Bitcoin presently in a corrective structure i.e. moving against the bullish market trend, the white scenario states Bitcoin has completed a B-wave in which it recorded a local price top on December 26th.
Currently, the premier cryptocurrency is moving in a C-wave headed to a potential price target in the mid to low $80,000 price zone. The original support zone to counter this bearish movement is around $95,068 – $96,670. However, as Bitcoin establishes new lows, these resistance regions will be recalibrated.
On the other hand, the yellow scenario shows that the B-wave, which is concluded in the white scenario, is still developing as part of a larger corrective structure with no price top yet recorded. However, for this yellow scenario to become valid, BTC needs to break above $96,673 signaling that an upward movement is still ongoing. Therefore, as long as this price zone remains unbroken, the white scenario remains the dominant outlook for the Bitcoin market.
BTC Price Overview
At the time of writing, Bitcoin is trading at $94,790, marking a 1.04% decline over the past 24 hours. Meanwhile, daily trading volume has risen by 10.35%, reaching $52.24 billion. After a week of near-balanced gains and losses, the leading cryptocurrency has dropped 2.00%, with its monthly performance also slipping into negative territory.
For market bulls, moving above $96,600 remains the immediate task based on the Elliott Wave theory, however, a major opposition awaits at $100,000 which has proved an effective resistance in recent times. Generally, optimism continues to remain high in the Bitcoin market, especially with the inauguration of US President-elect Donald Trump fast approaching which is expected to herald in a new era of pro-crypto policies.
Featured image from ABC News, chart from Tradingview
