• Bitcoin has experienced a 50 percent increase in price since the end of 2022, reaching a six-month high of $25,000.
• QCP Capital believes that the recent price increases are merely a “bear breather” and that Bitcoin is still in a bearish pattern.
• The Elliott Wave Theory suggests that there will be five waves in an asset’s movements, with waves two and four representing retrace waves before returning to its original form and price patterns.
Bitcoin Enduring Bearish Pattern Despite Recent Gains
Bitcoin appears to have had a strong year thus far, having expanded its price by roughly 50 percent since the end of 2022 to hit a six-month high of about $25,000 in February. However, despite this positive trend, some detractors such as Singapore-based crypto options trading company QCP Capital believe that Bitcoin is still trapped in a bearish pattern.
The Elliott Wave Theory
QCP’s analysis is based on the Elliott Wave Theory, which was first introduced by Ralph Nelson Elliott in 1938. It suggests that repeating patterns can be observed in assets to predict future price movements. The theory states that there will be five waves present: one, three, and five represent „impulse waves“ while two and four represent „retrace waves“. Retrace waves give an asset a break from its primary trends before returning it to its original form and prices. Currently, QCP claims Bitcoin is experiencing wave four — meaning it’s enjoying temporary respite from previous bear trends — but wave five could bring the currency back down again when it arrives.
Double Top Forming Against August High?
QCP said in their report: “A potential double top is forming against the August 2022 correction high…Until these levels break our five-wave count still remains valid with final wave five lower to come.“ This means if these levels don’t break soon enough then Bitcoin could again fall to lows seen at the end of last year around November or December.
Bear Market Predicted for 2021
Back in 2021 analysts predicted that this upcoming year would be incredibly bearish for Bitcoin; however so far it has managed to hold steady despite some minor fluctuations here or there. If QCP’s predictions are correct then we could see another dip towards those lows once more later this year or early next year as wave 5 takes effect.
Although BTC has experienced an impressive amount of growth over the past few months, according to QCP Capital there may still be more turbulence ahead for investors as they await wave 5 of the Elliott Wave theory. For now all eyes remain glued on whether or not bitcoin can break through resistance at $28800 – $30000 before any further dips occur later this year or early next year..