Originally published on: February 24, 2022
As Bitcoin undergoes a correction, the age-old Elliott Wave Theory suggests that the price could plummet to $25,500 this year. This theory, which divides price cycles into five upward-trending impulse waves followed by three corrective waves, indicates a bearish outlook for BTC.
The recent dip below $35,000 amid global tensions has brought attention to this technical analysis principle. The Elliott Wave Theory has a history of accurately predicting cyclical tops and bottoms in the Bitcoin market, making its forecast of a potential drop to $25,500 in 2022 noteworthy.
Looking at the Bitcoin chart, we can see the formation of three primary impulse waves and two corrective waves. While the fifth wave is still evolving and could push BTC above $100,000, the subsequent correction waves could drive the price down to the predicted level.
Past patterns show that Bitcoin has followed this Elliott Wave Cycle between 2012 and 2018, with each wave cycle reaching a peak and bottoming out around the 200-week exponential moving average. The current cycle suggests that BTC is on track to hit $25,500 as it completes its final wave c around the 200-day EMA.
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