On Tuesday, the Bitcoin price briefly dipped below the significant $100,000 threshold for the first time since June. Market expert Lark Davis summarized the facts behind the ongoing sell-off on the social media platform X (formerly Twitter), describing the situation as “absolutely relentless.”
Bitcoin Price Set For Deeper Correction
Davis highlighted a range of factors contributing to the Bitcoin price downturn, including selling activity from exchange-traded funds (ETFs), and large-scale investors known as whales. He suggested that fear among investors is reaching a peak, indicating a phase of significant capitulation.
Amid these developments, reports have emerged that the Bitcoin price is undergoing an Elliott Wave Correction. Analysts suggest that Wave (5) appears to be complete, and Wave (B) might have reached its peak.
This could set the stage for a deeper Wave (C) correction, potentially bringing the price down to the $70,000 to $75,000 range. This would mean an additional 30% decline ahead for the market’s leading crypto.
The unfolding Elliott Wave A-B-C structure indicates that there is strong support for the Bitcoin price in the “green box” seen in the chart above, which could serve as a potential reversal zone. However, the analyst caution that a substantial rally may follow the completion of the Wave (C) correction.
Altcoins At Risk
Further complicating the outlook, market analyst Ted Pillows emphasized that merely conducting quantitative tightening (QT) would not suffice to stabilize the market.
Referring to historical data from the third quarter of 2019, when the Federal Reserve (Fed) halted QT, Pillows noted that altcoins dropped significantly—by 40%—and did not find a bottom until the Fed initiated quantitative easing (QE).
He warned that the current situation would likely mirror that past experience, stating that unless new liquidity enters the market, alts will continue to set new lows. While a few may outperform, the majority are expected to decline further.
As of writing, the Bitcoin price had recovered the $100,900 mark. However, losses of 6% and 12% were recorded in the last 24 hours and over the past seven days, respectively.
Featured image from DALL-E, chart from TradingView.com
