Bitcoin May Still Fall: Is the Bearish Pattern Unavoidable?

• Bitcoin has seen a 50% increase in price since the end of 2022 and appears to be doing well.
• QCP Capital believes that the recent price jumps are only a temporary „bear breather“ and that bitcoin is still in a bearish pattern.
• The Elliott Wave Theory suggests that there will be further drops in price before it returns to its original form.

Bitcoin’s Recent Price Increase

In February, Bitcoin hit a six-month high of about $25,000, expanding its price by roughly 50 percent since the end of 2022. This increase has caused many to believe Bitcoin is doing well, but some are not convinced yet.

QCP Capital’s Analysis

QCP Capital, a crypto options trading company based in Singapore, recently released a report claiming that the digital asset was merely experiencing a „bear breather“ with its recent price jumps. The analysis stems from what is known as the Elliott Wave Theory which suggests repetitive patterns to predict future movements. According to QCP, Bitcoin is enduring wave four which means it is enjoying a break from previous bear trends but will soon experience wave five which could bring it back down to prices seen in November and December last year.

What Is The Elliott Wave Theory?

The Elliott Wave Theory was first proposed by Ralph Nelson Elliot in 1938 and suggests that observing patterns can help predict future price movements. It states that waves one, three and five represent primary trends while waves two and four represent retrace waves where whatever occurred previously disappears temporarily before returning again.

How Did BTC Perform In 2022?

2022 was easily the worst year for BTC as far as performance goes with prices dropping significantly throughout the year before beginning to increase again at the start of 2023. Now traders are watching closely to see if prices will continue increasing or if they will drop once more before returning back to normal levels.

Conclusion: Is Bitcoin Still Bearish?

Despite its recent increases, QCP Capital believes that Bitcoin may still be in for another drop due to wave five of the Elliott Wave Theory suggesting further falls before returning back to its original form and price patterns. It remains unclear how far these falls could go though so traders should keep an eye on BTC’s performance over the coming months for more clues about what comes next for this digital currency