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Currencies , Investing

Bitcoin: Elliott Wave Analysis Versus Wild Predictions

Will Bitcoin plunge – or skyrocket?

by Bob Stokes
Updated: December 09, 2022

Someone new to cryptocurrency investing might be a little confused -- OK -- a lot confused.

Here's what I'm talking about: On the one hand, we have these extremely bullish predictions:

  • Why [famous money manager] thinks bitcoin will still hit $1 million by 2030 and benefit from the FTX collapse (Nov. 29, CNBC)
  • [Venture capitalist] predicts bitcoin will reach $250,000 next year despite FTX collapse: 'The dam is about to break' (Dec. 5, CNBC)

On the other hand, we have this:

  • [CEO of Digital Asset and Blockchain Firm] Drops Forecast for Bitcoin to Hit $500,000 In 5 Years (Dec. 1, Bloomberg)
  • Bitcoin could plunge 70% to $5,000, Standard Chartered predicts, in possible 2023 'surprise' (Dec. 5, CNBC)

So, you can see how a novice investor, or even someone with a great deal of experience, can be scratching their head after reading such widely varied Bitcoin predictions.

Elliott Wave International prefers to use the wave model to analyze cryptocurrencies, including Bitcoin.

That's not to say that the Elliott wave method is a crystal ball; however, outside of an actual crystal ball -- it's the best method for analyzing financial markets of which we know.

Let's pick just one of several examples of how Tony Carrion, our senior cryptocurrency analyst, has used the Elliott wave model to analyze Bitcoin.

Back in March 2020, at the start of the pandemic, Tony provided a very, VERY bullish video update on Bitcoin in our monthly Global Market Perspective. You'll notice in the chart below that his analysis included a forecast for much, MUCH higher prices in wave 3, the strongest and fastest wave (as indicated by the upward arrow in the right side of the chart):


At the time, Bitcoin was trading a tad north of $8700. Afterwards, Bitcoin climbed as high as near $64,000 before pulling back.

Remember, at the time the March 2020 Global Market Perspective published its bullish outlook, there was a lot of negative news about the cryptocurrency.

For example, here's a Feb. 27, 2020 Forbes headline:

Bitcoin Has Crashed--Now What?

So, the upward rise in Bitcoin from March 2020 was by no means a given.

Realize that Elliott Wave International's analysts do not extrapolate the present into the future as so many investors are inclined to do. No -- they focus on a market's Elliott wave pattern, and Bitcoin's price pattern at the time strongly suggested that the cryptocurrency was not only headed higher -- but significantly so.

Returning to today, December 2022, you may want to set aside all those conflicting opinions about Bitcoin mentioned earlier and find out what the Elliott wave model suggests is next for the cryptocurrency.

Click on the link below to learn how you can access our new, December Global Market Perspective. Our Bitcoin forecast is in the "Cryptocurrency" section, where you'll also find Elliott wave analysis of Ethereum, Litecoin, Cardano and XRP.

[Note: Bitcoin, Ethereum, Litecoin and Cardano appear to be at critical junctures. Get our Elliott wave analysis by following the link below.]

What You Get with Elliott Waves is INVALUABLE:

"When an Elliott wave is complete, it brings striking clarity to the market's likely future direction. Such junctures offer complete independence from the herd, and those times tend to be highly rewarding."

Robert Prechter, The Socionomic Theory of Finance (2017)

Imagine knowing the market's "likely future direction" before any news happens. What an invaluable insight for your risk management!

In our almost 40 years in the business, Elliott Wave International's deep bench of analysts have yet to see a forecasting method that surpasses the usefulness of the Elliott wave model.

Try it for yourself -- and see if you agree. Follow the link below to get instant access to Elliott wave analysis of 50-plus global financial markets, including global stock markets (U.S. included), cryptocurrencies, forex, bonds, metals, natural gas, crude oil and much more.

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