Analyst: The BTC "squat" is not over, and the next wave of "jumping" targets $92,000

Author: BitpushNews Mary Liu

Bitcoin (BTC) regained $64,000 over the weekend but lost that support level in early trading on Monday.

The encryption market started the week with a Fluctuation, with BTC soaring to a high of $65,545 in the early hours of the morning, but the BTC quickly reversed course after news broke that the U.S. SEC (SEC) issued a Wells notice to Robinhood's encryption business unit alleging alleged securities violations.

At the time of writing, BTC is trading at $63,115 at a 24-hour fall of 1.5%. Other Crypto Assets were mixed, with Ethereum (ETH), DOGEE, SHIB and MATIC falling 2%-3%, while Solana (SOL) and XRP pumped 4%-6%.

BTC has not yet completed its pullback, and the next upside target is $92,000

John Glover, chief investment officer at Crypto Assets lender Leden, said Bitcoin prices could still fall before ending the pullback from its all-time high of $73,000 in March.

The Glover forecast is based on the Elliott Wave Theory, a technical indicator that assumes repeated fluctuations in asset prices. "While the falling to $56,500 may have completed the correction, I still expect the price to reach $52,000-$55,000 before the wave 4 correction is complete," Glover said. ”

The theory is that market movements tend to repeat a pattern over and over again, with each cycle consisting of 5 rising waves and 3 falling waves. The first, third, and fifth waves are impulse waves that represent the main trend, while the second and fourth waves are pullbacks between impulse price actions.

Glover concluded, "Once the next fall/correction wave is complete, I expect Wave 5 to be pushed up to around $92,000. ”

Other bullish rhetoric

QCP Capital, a Crypto Assets Hedging fund, observed a resurgence of demand for Bitcoin call options in September, with strike prices of $75,000 and $100,000, respectively, illustrating investor optimism that BTC will climb to higher prices in the coming months. Bernstein analysts also told clients in a note on Monday that BTC is "far from completing its pump cycle" and reiterated their forecast that BTC will reach $150,000 by the end of 2025.

Analysts Gautam Chhugani and Mahika Sapra said: "We feel better about this call, with indicators suggesting that this is a healthy cycle but still in its early stages. The risk-reward is still attractive here. ”

They said the correction from Bitcoin fall to lows near $56,525 is positive for the market as it "clears excess leverage from Crypto Assets exchange futures contracts."

Analysts also highlighted that U.S.-listed Spot BTC exchange-traded funds (ETF) saw inflows again on Friday after eight consecutive days of outflows. Notably, Grayscale's GBTC recorded a net inflow of $63 million on Friday after 78 consecutive days of outflows, and analysts said "this number is significant considering that GBTC has been the source of a large number of sustained sell-offs that the new nine ETFs have had to absorb." ”

Other positive factors cited by Bernstein analysts include strong overall inflows ETF the past three months, rise interest from businesses to buy Bitcoin, stable Computing Power after Halving, stable Money Laundering after Halving, and low Bitcoin Mining equipment prices.

Mike Martin, head of content at tastycrypto, also saw last week's pullback as the health of the market, expecting Bitcoin to "stabilize near the $60,000 mark in the near term, subject to ongoing inflation concerns and monetary policy uncertainty, with prices continuing to stabilize in the coming months."

Martin said in a report: "Looking ahead to the end of the year, Bitcoin has every chance of reaching $80,000. However, this forecast depends on several factors that become more favorable, including clearer monetary policy signals and potentially lower Intrerest Rates, which could reignite investment interest in risky assets like Bitcoin. ”

He added that the clarity of the rate cut "will be key to rekindling Bitcoin Bull Market." The move could improve broader market sentiment and encourage investment in Crypto Assets as an alternative to traditional investments, which may offer lower returns in a lower Intrerest Rate environment, especially if the dollar depreciates. ”

Vijay Marolia, co-founder of The Cash Square, agrees that "the bottom may have arrived" and "expects the Bitcoin Bull Market to continue this year".

"While technically, I wouldn't be surprised [in the short term] if the price falls to the $50,000 level – I think the bottom may have arrived, so I expect the Bull Market in Bitcoin to continue this year as the price of Bitcoin is inversely proportional to the confidence of global fiat coins," he said.

As for the catalyst for rekindling Bull Market momentum, Marolia noted that "the Fed (or other major Central Bank) will adopt a more long easing policy, any additional increase in government spending (which will be taxed or inflated), and any spike in 10-year Treasuries and/or a downgrade in the U.S. credit rating." ”

Emmanuel Quezada, CEO of U-topia, said: "While it is challenging to accurately predict the top or bottom of the market, it can be asserted that the current discounted prices present a significant opportunity to achieve the new ATH in 2024. ”

"Given current market trends and the impact of institutional order flows on market capitalization, the likelihood of Bitcoin reaching $100,000 in the next quarter is high, and market corrections often stem from uncertainty," Quezada said. Regulatory clarity within the market framework is therefore a key driver to steer liquidity in a favourable direction. ”