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Bitcoin’s Price Surge: A Three-Wave Pattern and Potential Retracements

How HIGH can Bitcoin go? (Analysis)
How HIGH can Bitcoin go? (Analysis)

Bitcoin, the world’s leading cryptocurrency, recently reached a new yearly high at $44,700, igniting excitement among investors. However, the market has since experienced a pullback, forming a three-wave pattern, raising questions about the cryptocurrency’s long-term trajectory.

Potential Upside Targets

Analyzing the current price action, Nick can anticipate a potential move up within the range of $45,139 to $45,556. This range aligns with the recent price surge and suggests that Bitcoin could continue its upward trend.

Potential Shift to a Retracement Pattern

If the price falls below $45,554, we could witness a shift to a wxy x and z structure, indicating a larger corrective pattern. This would involve a retracement to support levels around $43,554 and $43,706.

Anatomy of Support Levels

The support levels around $43,554 and $43,706 are crucial for Bitcoin’s stability. If these levels hold, we could expect a bounce back and a continuation of the uptrend. However, if the price breaks below these levels, it could trigger a larger corrective structure.

Indicators: Signals of Caution

While the daily stochastic appears overbought, there is no divergence, suggesting that the overbought condition may not necessarily trigger a reversal. However, the volume profiles show decreasing volume with higher highs, indicating a potential weakening of the uptrend.

Scenario Planning: Potential Downside Targets

Considering various scenarios, potential downside targets include $36,262 to $37,720, $33,030 to $31,818, $24,756 to $26,878, and $19,569 to $2,789. These levels could act as support during potential retracements.

Long-Term Perspective: Potential Correction

Taking a long-term view, the monthly stochastic RSI signals a potential correction, indicating that Bitcoin could consolidate its gains before resuming its upward trajectory.

Cautionary Outlook and Deeper Retracements

Given the overbought conditions on various timeframes, a cautious outlook is warranted. It’s possible that Bitcoin could experience a deeper retracement, potentially reducing the price by up to 40%.

Emphasizing Caution and Awareness

It’s essential to approach Bitcoin’s price movements with caution, staying informed of market dynamics and making informed decisions based on risk tolerance.

Stay Informed, Make Informed Decisions

Nick encourages viewers to stay informed about Bitcoin’s price movements, conduct thorough research, and make informed investment decisions that align with their risk appetite.

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