Bitcoin Rebounds After $78,331 Support... Will $90,000 Open Up Again?

▲ Bitcoin (BTC)/AI generated image

Bitcoin (BTC) is once again testing the possibility of further price increases, rebounding from the 'Blue Box' area, which was presented as a key buying zone according to Elliott Wave analysis.

FXStreet reported on May 12 (local time) that an analysis of Bitcoin's 1-hour Elliott Wave chart showed the upward trend since the April 29 low developed into an impulse wave structure. The analysis suggests that the likelihood of a further upward extension is high, as higher highs are observed in larger time frames.

According to the analysis, Bitcoin completed its first wave of the upward cycle, which began from the April 29 low, at a high of $82,833. Subsequently, a second wave correction occurred, and its internal structure developed in a zigzag pattern according to Elliott Wave theory. In this process, wave 'a' ended at a low of $80,728, and wave 'b' rebound concluded at a high of $81,706.

Following this, the wave 'c' correction reached the blue box zone between $79,625 and $78,331. FXStreet explained that buying pressure appeared in this zone, suggesting the start of the next upward phase or at least a third wave rebound. Recent charts showed Bitcoin actually rebounding after completing a zigzag correction in this zone.

However, to confirm a further upward movement, a breakthrough of the $82,833 high is required. FXStreet analyzed that if Bitcoin surpasses this price level, the next upward target zone could open up between $87,072 and $91,961. Conversely, if it fails to break this high, the current rebound might only be a short-term recovery after a correction.

This analysis focuses on the fact that Bitcoin confirmed buying pressure in the short-term correction zone. The key observation points for the market are the maintenance of the $78,331 lower support zone and whether it breaks through $82,833. If both conditions are met, Bitcoin will again test the possibility of re-entering the $90,000 range.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*