Can Bitcoin Drop Below $20,000 Again? 5th Wave Warning from Analyst!

of bitcoin Bottoming out at $15500 and rebounding above $20,000 aroused the bullish expectations of many investors.

Lots of on-chain data in bitcoin Although it signals that we are at historical lows, some analysts are waiting for another bottom.

QCP Capital analyst Ralph Nelson, who attributed the recent rise to the fatigue of bears and evaluated it as a breather, explained the expectation in Bitcoin based on the principle of Elliot Waves.

The theory, which emerged in 1938, helps make a prediction by assuming that price movements follow a repeating wave pattern.

According to the Elliot wave principle, the 1st, 3rd and 5th waves represent the movements in the direction of the main trend, while the 2nd and 4th waves represent the resting and breathing parts between this trend.

According to QCP’s analysis, the waves formed with the drop from $69,000 are as follows:

Analysts used the following statements about the 5th wave:

“A double top is forming in the August 2022 retracement zone ($25300). Above these levels, we have major resistance in the $28,800 and $30,000 region. Until these levels are broken, we keep our expectation that the 5th wave may come. In a possible reversal, wave 5 could push us as far as $15480.”

As can be seen, if the price can go above the $28800-30000 band, the 5th wave structure will be broken.

Although QCP analysts are expecting a new wave in Bitcoin, when we evaluate it together with other metrics, we do not expect a long-term sideways movement below $20,000 or a pricing well below $20,000, even in the worst-case scenario.

Are you waiting for a new bottom in Bitcoin?

*Not investment advice.