Are We Entering Wave V? Further Bitcoin Downside Still Likely, Analysts Say

Core Viewpoint - The crypto market is experiencing sideways trading, with analysts suggesting that the final phase of the current bull run may be approaching, but further downside is also anticipated due to significant risk-off factors affecting Bitcoin recovery [1]. Price Movement - Bitcoin (BTC) has seen a decline from an intraday high of $95,467 to a low of $92,263, currently trading at $92,973. Over the past week, BTC has appreciated by 2.6% and by 5.4% over the past month [2]. Market Analysis - John Glover, Chief Investment Officer at Ledn, posits that BTC is currently in Wave IV of a major bull run, with a potential transition to Wave V imminent. The target for the current wave is set between $71,000 and $84,000 [2][3]. - The analysis suggests that the corrective wave follows an A-B-C structure, indicating a likelihood of another downward movement before a potential rise [3]. Elliott Wave Theory - According to Elliott Wave Theory, Wave IV represents a corrective phase against the preceding bullish trend established by Wave III, with Wave V expected to follow, leading to a new peak [4]. Market Sentiment - The crypto market began the previous week positively, supported by strong institutional buying and inflows into Bitcoin exchange-traded funds (ETFs). Bitcoin managed to break above the $95,000 resistance level, driven by demand from large corporate buyers like MicroStrategy [5]. Confirmation Levels - Confirmation of the market path will depend on either a break and close above $104,000, indicating the start of Wave V, or a break below $80,000, which would suggest a move towards the low $70,000 range before any upward movement [6].