According to technical analysis from analyst Xanrox, Bitcoin is on track to hit $130,000 in the next few months. Notably, this bullish price target may go unnoticed as it is one of the many bullish predictions that have surrounded Bitcoin in recent times. However, Xanrox’s prediction is intriguing because it also comes with a bearish outlook once the price target is met.
To support his forecast, Xanrox relied on a combination of Fibonacci Extensions and Elliott Wave momentum, two of the most popular analysis tools. Together, these tools allowed Xanrox to not only pinpoint the journey to the $130,000 target, but also identify a sharp retracement to $60,000,
Bitcoin Price Roadmap to $130,000
Sharing his views on TradingView, crypto analyst Xanrox highlighted that Bitcoin price is currently on track to complete the fifth Elliot wave, having completed the fourth wave in August.
Impulse waves, which have five waves in total, are part of the two main wave types in the Elliot Wave theory, the other being corrective waves. Impulse waves are strong, directional movements in the market in the direction of the overall trend. These waves are divided into five sub-waves, labeled 1 through 5. The odd-numbered waves (1, 3, and 5) represent the driving forces behind the trend, while the even-numbered waves (2 and 4) are consolidation phases that create a pause before the next move in the trend.
According to Xanrox analysis, Bitcoin officially entered Wave 5 after hitting a corrective low of $49,000 in August. This marked the end of Wave 4, which served as a consolidation phase after the strong rally in Wave 3, with Bitcoin hitting a new all-time high. Now, with the final impulse wave underway, the focus has shifted to how high Bitcoin can climb.
To predict the potential top of Wave 5, Xanrox used Fibonacci extensions. Interestingly, when the Fibonacci extension was applied from the low of Wave 4, the 0.618 Fib extension perfectly aligned with the major trendline marking the tops of both Wave 1 and Wave 3.
As such, this suggests that the 0.618 Fib extension could play a pivotal role in the next phase of Bitcoin price action. At this intersection, a price target of $130,000 would be in sight, representing a significant 100% increase from current levels.
What's Next After $130,000?
Xanrox's outlook goes beyond just a bullish price target. The analyst also warns and highlights the possibility of a sharp reversal after Bitcoin reaches its fifth wave peak. Based on the models, he notes that Bitcoin's previous waves have experienced significant corrections of 70% to 80% after the end of the impulse wave cycle.
For this reason, Xanrox predicts that Bitcoin could fall rapidly to $60,000 after reaching $130,000, possibly by January 2025.