- Bitcoin price makes new all-time highs and cracks above the $65,000 level.
- Bitcoin enters into a new price discovery mode as buyers now attempt to find a new ceiling.
- New Bitcoin Futures ETF (NYSE ticker: BITO) surpassed $1 billion in trading volume on Tuesday
Bitcoin price created history again as it broke to new all-time highs right on the heels of the BITO ETF trading debut. This article will attempt to answer the question everyone is now asking: "Where is the next all-time high?"
Predicting Bitcoin's Future Price Levels
The following article contains price analysis utilizing the methods of W.D. Gann and other traditional forecasting methods. The purpose of these forecasting methods is not to target a specific price. Instead, the goal is to identify a price range that is highly likely to be a turning point for any trend or corrective move.
Confluence zones
How are future price levels determined if they have never traded at those price levels before? A series of different types of analysis should be completed to speculate and project a future price range. For this analysis, I will be utilizing Elliot Wave Theory, natural harmonic values found in the light and sound spectrum – specifically the methods by the great Gann analyst, Tony Plummer (The Law of Vibration, and The Life Cycle Hypothesis), Gann's Square of 9 and Fibonacci Expansion zones. The result of this analysis shows a cluster of price ranges, all with the same value area. They are as follows:
$122,155 – Inner Octave 'La' (Harmonic Range in Music, sound spectrum)
$123,848 – 360-degree Gann Dynamic Hexagon Angle
$124,190 – Extended 3rd Wave: 361.8% Fibonacci Expansion of Wave 1 ($29,313 to $52,672)
$126,747 – Range of Impulse Wave 1, starting at Wave 4
$126,820 – 270-degree Gann Dynamic Square of 9 Angle
$126,997 – 3rd Wave: 161.8% Fibonacci Expansion of Wave 1 ($4,467 to $64,829)
BTC/USD Monthly Ichimoku Chart
Operating on the theory that Bitcoin price is approaching Wave 5 of an Impulse Wave, the projected next major resistance level is near the $125,000 value area. Bitcoin price may find some resistance on the way to $125,000; there are some confluence zones near $85,000 and $106,000 that may act as some temporary roadblocks. Above the $125,000 value areas the next levels of importance with a similar collection of price confluence zones are $204,000, $260,000, $340,000 and $450,000.