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Bitcoin Movement Still Aligns with Elliott Wave
What is the Elliott Wave Theory?
Bitcoin Wave Path: Peaks Approaching, Bear Market Looming
Currently, Bitcoin holds the top position in the cryptocurrency market, with market data showing a 4% decline over the past week, and the price briefly falling below $112,000 over the weekend. This drop occurred after long-term holders took profits around the $120,000 mark, coinciding with significant declines in stocks associated with cryptocurrencies, such as MicroStrategy and Coinbase.
However, John Glover, Chief Investment Officer of Ledn cryptocurrency financial services, stated that this is merely a typical retracement wave, a brief respite within the upward trend, potentially laying the groundwork for a surge to $140,000 before the year’s end.
“Currently, BTC is experiencing a summer consolidation phase, with prices still operating along the expected trajectory, about to complete the five-wave movement indicated by the blue line, specifically the iii sub-wave (yellow line) within the fifth wave (orange line). Overall, we still expect to reach the $135,000 to $140,000 range by the end of 2025.”
What is the Elliott Wave Theory?
The Elliott Wave Theory was first introduced by Ralph Nelson Elliott in his 1938 publication “The Wave Principle.” This theory posits that market movements conform to recurring structural patterns found in nature and possess predictability, appearing cyclically like fractals.
According to this theory, the market exhibits a five-wave structure in the direction of the main trend, comprising three impulse waves (waves 1, 3, and 5) and two corrective waves (waves 2 and 4). In certain cases, impulse waves can extend into a stronger five-wave structure.
Following this five-wave structure, a three-wave corrective structure will immediately follow. This “five plus three” wave pattern repeats across different time scales, allowing observers to forecast future movements based on their current position.
Bitcoin Wave Path: Peaks Approaching, Bear Market Looming
According to the technical analysis charts provided by Glover, Bitcoin is currently in the iii impulse wave of an extended wave 5, with the potential to reach $130,000 in the coming weeks, followed by a pullback to around $110,000 to complete the iv corrective wave. Ultimately, the v wave will initiate, driving the overall endpoint of wave 5 to approximately $140,000, which will also mark the peak of this bullish cycle. John Glover stated:
“Once we reach the $140,000 area, there will undoubtedly be a surge of optimistic forecasts in the market regarding whether it can break through $250,000 or even $500,000. However, I do not agree with this perspective, as I believe Bitcoin will enter a bear market in 2026.”
