Bitcoin Might Pullback Before Rallying to 100K: Key Levels to Watch for Dip-Buyers

[Pelican Press 0]

Bitcoin Might Pullback Before Rallying to 100K: Key Levels to Watch for Dip-Buyers

Three weeks ago, see , we found for (), based on our Elliott Wave Principle (EWP) analyses,

“We don’t expect that [the March 4th] intra-day pullback of 14.8% was all BTC/USD will experience before rallying to the $100-200K level, but that a deeper multi-day correction to around ~$54+/-2K should be around the corner.”

BTC/USD rallied for another eight days to $73672, dropping to $60782 on March 20th. See Figure 1 below. Since corrections (2nd, 4th, and B-waves) always move in at least three waves, W-a, -b, and -c, we expect that low to be grey W-a of the green W-4, and the current rally to be grey W-b, with a final grey W-c to ideally $54-57K yet to follow.

The latter target zone matches the 38.20% retracement of the green W-3 rally at $55080 well—a typical retrace target for a 4th wave. Moreover, the current rally from the March 30th low is, so far, still only three (orange a, b, c) waves up right into the ideal grey W-b target zone after three orange waves down: see the blue oval in Figure 1 below.

Figure 1: The Daily Chart of BTC/USD with Several Technical Indicators and a Detailed EWP Count.

In our last update, we looked at previous corrections and found that

“During the Bull run of 2020-2021, BTC/USD experienced five 13.5 to 31.5% multi-day pullbacks, shown in red, whereas it has experienced four 20.6-22.8% multi-day pullbacks so far since the 2022 low. Thus, on average, BTC experiences a 22 to 23% multi-day pullback before the uptrend resumes.”

In greater detail, in early January 2021, see Figure 2 below, BTC/USD experienced a ~18.4% drop in less than one-and-a-half days (red), rallied 48.3% in four days (purple), dropped 31.5% over the next two weeks (thick red), to then stage a >100% rally (thick green). See Figure 2 below.

Figure 2: BTC/USD in 2021 vs. Now:.

Now, using the ****** arrows, BTC/USD experienced a 14.5% correction one-day pullback, a seven-day 24.7% rally, and so far, a 17.9% decline to the March 20th low, which is a little less than the average 22-23%. If we apply that, we should expect BTC/USD to bottom out at around $57.5K, close to the level as mentioned earlier of $55080 and the $54-57K target zone for the grey W-c.

Of course, BTC/USD does not have to follow the same path as in 2021 and could have already bottomed out. Hence, we have the ******** warning levels on the chart to tell us if that is increasingly likely. Or, more likely, it may provide us with a flat (3-3-5) correction, which targets ~$74+/-1K first, then drops back to ~$60+/-1K before liftoff. Regardless, we remain Bullish over the long-term for BTC and expect it to reach at least $100K, with an adjusted upside target of $150+/-25K.

This is the hidden content, please

• Sign In
• or
• Sign Up

[BTC/USD, Grayscale Bitcoin Trust (BTC), Bitcoin Futures CME, Bitcoin
#Bitcoin #Pullback #Rallying #100K #Key #Levels #Watch #DipBuyers

This is the hidden content, please

• Sign In
• or
• Sign Up