Bitcoin Price Falls Under $100,000: Elliott Wave Analysis Forecasts Decline To $70,000
Bitcoin's price briefly dipped below $100,000 for the first time since June, amid a relentless sell-off driven by ETF sales and large-scale investors. Analysts speculate a deeper Wave (C) correction could lower Bitcoin to $70,000-$75,000. Altcoins also face risks, with market conditions potentially mirroring 2019 trends. Despite a slight recovery to $100,900, Bitcoin has seen a 6% daily and 12% weekly loss.
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Bitcoin Price Dips Below $100,000
On Tuesday, the Bitcoin price briefly dipped below the significant $100,000 threshold for the first time since June. Market expert Lark Davis summarized the facts behind the ongoing sell-off on the social media platform X (formerly Twitter), describing the situation as “absolutely relentless.”
Factors Driving Bitcoin's Downturn
Davis highlighted several factors contributing to the Bitcoin price downturn, including selling activity from exchange-traded funds (ETFs) and large-scale investors, also known as whales. He indicated that investors' fear is peaking, signaling a phase of significant capitulation.
Elliott Wave Correction Patterns
Reports suggest that the Bitcoin price is undergoing an Elliott Wave Correction. Analysts claim that Wave (5) appears to be complete, and Wave (B) may have reached its peak. This sets the stage for a deeper Wave (C) correction, with the potential to bring Bitcoin's price down to the $70,000 to $75,000 range—a possible additional 30% decline. Despite this downturn, the green box seen in charts is identified as a strong support level, potentially serving as a reversal zone. However, analysts caution that only after the completion of this correction could a substantial rally occur.
Altcoins Face Additional Risks
Market analyst Ted Pillows emphasized that merely conducting quantitative tightening (QT) will not stabilize the market. Drawing from historical data from Q3 2019, when the Federal Reserve (Fed) halted QT, Pillows noted that altcoins dropped significantly, by 40%, and only recovered after the Fed initiated quantitative easing (QE). He warned that the current situation could mirror the past unless new liquidity enters the market, predicting that most altcoins are likely to continue setting new lows despite a few exceptions that might outperform.