Bitcoin price jumps, targets $51,000
|- Bitcoin price action has been established between $36,250 and $42,650 in the last seven weeks.
- On four separate occasions since 2019, Bitcoin has consolidated more than ten weeks before a new definitive trend was established.
- BTC appears to be forming a triangle, which could take several more weeks to fully develop.
Bitcoin price usually undergoes long-term consolidation phases. Although trading range-bound price action can be rather tricky, the longer the stagnation period, the more bullish BTC gets.
Bitcoin price rebounds swiftly
According to Elliot Wave Theory, triangles can only manifest with three swings per letter. For traders looking to scalp the market, it is best to assume that the C wave of the triangle Bitcoin price is unfolding was printed at $32,933 on January 24.
An upswing into the $51,000 area is very likely to happen in the weeks to come and is necessary to validate the D wave of the triangle formation. The lower time-frames are already showing bullish signals that could validate the optimistic outlook.
Bitcoin Weekly Chart
It is essential to consider an alternate scenario when speculating on larger timeframe patterns. Bears can still maintain control over Bitcoin price, sending it as low as $33,000 for another 13% price decline.
Still, long-term investors should beware that a break below the C wave at $32,933 will NOT invalidate the idea of the triangle formation, as C waves are commonly known to form complex corrections.
Any touch of Wave A at $29,301 will invalidate the overall triangle thesis.
If the triangle thesis is invalidated, a steep correction will be the next plausible idea for Bitcoin price with further price drops of 30–40%, challenging support at $26,500 and $24,000.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.