{"id":21853,"date":"2024-06-03T07:30:09","date_gmt":"2024-06-03T11:30:09","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=21853"},"modified":"2024-06-03T07:30:09","modified_gmt":"2024-06-03T11:30:09","slug":"how-we-find-our-target-for-bitcoin","status":"publish","type":"post","link":"https:\/\/stage.jeffclarktrader.com\/market-minute\/how-we-find-our-target-for-bitcoin\/","title":{"rendered":"How We Find Our Target for Bitcoin"},"content":{"rendered":"

Last Tuesday, I showed you the roadmap that bitcoin is most likely to follow<\/a>.<\/p>\n

It’s all thanks to a little-known secret…<\/p>\n

In the 1930s, an American accountant called Ralph Nelson Elliott made a monumental discovery.<\/p>\n

Mr. Elliott was obsessed with studying the stock market. And what he discovered is that the stock market doesn’t move in a random manner.<\/p>\n

Instead, his studies showed that the markets follow a predictable pattern. He would go on to name his discovery the Elliott Wave Principle (EWP).<\/p>\n

Here’s how it all works…<\/p>\n

How Much Higher Can Bitcoin Go?<\/h2>\n

According to the EWP, markets trend and reverse in a predictable manner. You can follow along on this chart…<\/p>\n

The trending phase of the market has 5 “waves.” Waves 1, 3, and 5, push the market in the direction of the larger trend.<\/p>\n

<\/p>\n

\"Image\"<\/p>\n

Waves 2 and 4, on the other hand, see the market pull back against the direction of the larger trend.<\/p>\n

Once we have a completed 5-wave cycle, we’ll see a counter-trend pullback in 3 waves. This pattern repeats itself over and over and over again.<\/p>\n

We use numbers (1, 2, 3, 4, 5) to label the trending waves. And we use letters (A, B, C) to label the countertrend components once a 5-wave cycle is complete.<\/p>\n

Last week I shared where bitcoin sits within its current wave cycle.<\/p>\n

As you can see from the labels, we still have one more wave higher to go before a more significant 3-wave pullback begins.<\/p>\n

Of course, the big question is how much higher<\/em> does bitcoin have to go?<\/p>\n

Thankfully, the EWP holds a few possible answers.<\/p>\n

If you look closely at the chart, the arrow pointing to Wave 5 comes in a little above $110,000. That’s no accident.<\/p>\n

<\/p>\n

\"Image\"<\/p>\n

In addition to giving us a roadmap to the pattern that markets continuously follow, the EWP also helps us set price targets, too.<\/p>\n

In the case of trying to narrow down a target range for Wave 5, we want to look at Waves 1 and 4 first.<\/p>\n

Wave 5 begins as soon as Wave 4 comes to an end.<\/p>\n

In the case of bitcoin, that means the end of Wave 4 and the start of Wave 5 took place on May 1 from a price of $56,500.<\/p>\n

So now we have a starting point from which we can calculate our target.<\/p>\n

<\/p>\n

\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n

<\/p>\n

What Target to Look for Now<\/h2>\n

Next, we want to look at the total distance bitcoin travelled in Wave 1.<\/p>\n

Wave 1 started on November 21, 2022, and ended on April 14, 2023. Over this period of time, Wave 1 travelled $15,590.<\/p>\n

This resulted in bitcoin basically doubling in value as it went from $15,460 to $31,050 over the course of Wave 1.<\/p>\n

One of Elliott’s discoveries was that Wave 5 tends to be similar in length to Wave 1 on either a price or percentage basis.<\/p>\n

Well, a price-based relationship doesn’t make too much sense here. That would mean bitcoin would only go higher by about $15,590 from its May 1 low.<\/p>\n

This would result in a final Wave 5 target of $72,756, which would still be a few dollars below the previous all-time high of $73,835.<\/p>\n

So, it seems that a percentage-based target for Wave 5 is much more logical.<\/p>\n

That would mean we should look for bitcoin to double in value<\/em> from its May 1 low of $56,500. This gets us a final target of around $112,607.<\/p>\n

Of course, these are rough approximations. It’s rare the market unfolds in such a picture-perfect manner.<\/p>\n

But it’s still very important to keep this upside target in mind. Especially if bitcoin gets close to this target range.<\/p>\n

Past bitcoin crashes have seen its value get crushed by over 80%. It’s very prudent to take gains off the table if you don’t want to sit through another vicious bear market cycle.<\/p>\n

Happy trading,<\/p>\n

\"Signature\"<\/p>\n

Imre Gams
Analyst, Market Minute<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

This principle can help us find the target to hit for bitcoin\u2026<\/p>\n","protected":false},"author":55,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[76],"newsletter-type":[],"ticker":[],"class_list":["post-21853","post","type-post","status-publish","format-standard","hentry","category-uncategorized","publication-market-minute","person-imre-gams"],"acf":[],"ai_tts_audio_outdated":false,"ai_tts_legacy_post":false,"_links":{"self":[{"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21853","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=21853"}],"version-history":[{"count":0,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21853\/revisions"}],"wp:attachment":[{"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=21853"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=21853"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=21853"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=21853"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=21853"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=21853"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=21853"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}