- Bitcoin (BTC) is poised for a breakout from its Wave 4 correction, with key support at $93,260 and resistance at $106,000.
- A move above resistance could trigger a rally toward $122,182, while a drop below $94,780 may signal further downside.
Bitcoin (BTC) is at a make-or-break moment. The price action suggests a potential breakout as it moves through a crucial corrective phase. Traders are closely watching key Fibonacci levels and Elliott Wave counts for confirmation of the next major move.
BTC Price Consolidation Near Key Support
Bitcoin has been consolidating within a Wave 4 correction after reaching a local high of $108,400. Since December 17, BTC has followed an ABC corrective structure, with price action contained within a descending resistance channel.
According to Elliott Wave principles, Wave 4 corrections typically form sideways or downward movements before an impulsive Wave 5 breakout. The 0.236 Fibonacci level at $93,260 and the 0.382 level at $85,512 serve as critical support zones. Holding above these levels would strengthen the case for a bullish breakout.
Momentum and Volume Analysis
The Relative Strength Index (RSI) remains neutral, indicating a balance between buyers and sellers. However, volume trends suggest decreasing selling pressure, a sign of possible accumulation before a breakout attempt.
Bitcoin faces key resistance at $106,000. A decisive move above this level would confirm the breakout and signal a continuation of the uptrend. Failure to clear resistance could lead to another retest of lower support levels.
Bitcoin Price Prediction: Wave 5 in Play?
On the 1-hour chart, Bitcoin appears to have completed its Wave 4 correction at $91,600 on February 3. The recent rally to $102,550 suggests the early formation of a new five-wave impulse pattern.
If this structure holds, the next pullback (Wave ii) should find support near $97,250 before Bitcoin extends higher. The expected target for Wave (iii) is around $111,715, followed by a minor dip (Wave iv) and a final push toward $118,560 – $122,182.
However, a break below $94,780 could invalidate this bullish outlook. In that case, BTC may need to retest the $91,000 level before resuming its uptrend.
Breakout Confirmation or Extended Correction?
For Bitcoin bulls, the key signal remains a break above descending resistance. If BTC clears this hurdle, it strengthens the case for an upward continuation toward new highs.
Conversely, a failure to hold key support levels could extend the correction, pushing Bitcoin toward lower Fibonacci retracement zones before resuming its bullish trajectory.
Traders are now waiting for confirmation. Will BTC break out, or is more downside in store? The next few sessions could provide the answer.
