Bitcoin Wave 3 expansion targets $200K as sell-side pressure fades: Analyst

Bitcoin's long-term price structure is showing signs of renewed strength, with analysts suggesting that the cryptocurrency may be entering its Wave III expansion phase. If this pattern unfolds similarly to past instances, Bitcoin (BTC) could surge to between $200,000 and $240,000 in the coming months.

Bitcoin's Wave III expansion could lead to significant price increases

Market analyst Gert Van Lagen highlights that Bitcoin has recently rebounded from its 40-week simple moving average (SMA), indicating a potential shift in market dynamics. According to Van Lagen, the corrective Wave II phase appears to be nearing completion, paving the way for the upcoming Wave III expansion. This pattern, if completed, could see BTC prices climb significantly.

US economic conditions may boost Bitcoin's value

Macroeconomic factors are also playing a crucial role in Bitcoin's outlook. Researcher Sminston With notes that the US Purchasing Managers’ Index (PMI) has remained below 50 for nearly three years, indicating a prolonged economic slowdown. Historically, such downturns have been followed by substantial recoveries, suggesting that a rebound could soon occur. This economic recovery could drive investors back into risk assets, with Bitcoin positioned to benefit from renewed market confidence.

Current Bitcoin price action seeks confirmation of bullish reversal

Despite the long-term bullish outlook, Bitcoin's short-term price action is still in a phase of confirmation. Recently, Bitcoin filled a CME gap formed over the weekend and is now trying to establish a stronger position above the $105,000 mark. Data indicates a decrease in futures open interest following a significant liquidation event, signaling reduced activity among larger investors. However, recent patterns show that localized mean reversion could lead to a bullish reversal, particularly if Bitcoin can maintain its position above key price levels.

Investing in Bitcoin involves risks and requires careful consideration

As always, potential investors should remember that investing in Bitcoin carries risks. Market volatility means that price predictions can change rapidly, and individuals should conduct thorough research before making investment decisions. The current trends and analyses suggest a potentially favorable environment for Bitcoin, but caution is advised.