Following a volatile week, Bitcoin has stabilized around the $106,000 mark. On-chain data, however, indicates cautious investor sentiment, with the crypto Fear & Greed Index currently in a neutral range.
Technical analysis on the 4-hour candlestick chart suggests Bitcoin has completed a key corrective phase, setting the stage for a significant rally towards $130,000.
Correction Phase Potentially Concluded
Crypto analyst XForceGlobal shared an Elliott Wave analysis on the social platform X, outlining a completed WXY correction pattern. This second wave correction began after Bitcoin’s all-time high of $111,814 on May 22 and retraced into the ideal Fibonacci range between 23.6% and 38.2%. The pullback reached just below $98,200, satisfying the minimum target near $90,000.
Importantly, this correction preserved the macro wave structure, avoiding a deeper retracement typical of bear markets. This suggests the correction was a wave 2 phase within a larger bullish impulse.
Wave 3 Rally Expected
If this wave 2 correction is complete, Elliott Wave theory anticipates a wave 3 advance, often the strongest price surge. XForceGlobal’s projection shows wave 3 extending beyond Bitcoin’s previous high of $111,814, possibly surpassing $130,000.
The analyst identified a key pivot area between $98,000 and $102,000 as the termination point of wave 2. Confirmation of the bullish wave 3 requires Bitcoin to form a new local high and then pull back without falling below recent lows, establishing a valid 1-2 structure.
Recent Price Movements
Bitcoin rebounded approximately 8% after falling to $98,200, a drop linked to geopolitical tensions in the Middle East. A subsequent cease-fire report on June 24 boosted the price another 4%. At the time of writing, Bitcoin trades near $106,330.