Bitcoin Rallies 8% to $106,330 After Middle East Cease-Fire

Bitcoin has recently returned to the $106,000 price level after a week of volatile price action. Despite this, on-chain data indicates that investors remain cautious, with the crypto Fear & Greed Index currently in the neutral zone.

Technical analysis of Bitcoin’s price action on the 4-hour candlestick timeframe chart suggests that its price behavior has completed a significant correction, setting the stage for a major rally to $130,000. According to XForceGlobal, a crypto analyst, Bitcoin’s recent correction fits neatly within a completed WXY pattern. The second wave, which began after the all-time high of $111,814 on May 22, has now retraced into the expected Fibonacci range between the 23.6% and 38.2% levels. The ideal minimum target for this correction move was in the $90,000 region, and Bitcoin fulfilled that condition with the pullback to just under $98,200 over the weekend.

The analysis maintains that this was a wave 2 correction within a larger bullish impulse, rather than a deeper pullback characteristic of bear market retracements. If the WXY correction is indeed complete and wave 2 has concluded, the next logical move in the Elliott Wave sequence is a third wave advance. According to Elliott Wave analysis, the third wave is often the most explosive in terms of price expansion, potentially pushing the price of Bitcoin to new heights significantly higher than its most recent all-time high.

The analyst’s technical projection on Bitcoin’s 4-hour candlestick timeframe chart shows an expected wave 3 trajectory extending beyond $111,800, with an expansion arrow reaching up above $130,000. This projection is based on a similar expansion move of Wave 1. The key pivot zone between $98,000 and $102,000 is marked as the Wave C termination area. If this zone indeed marks the completion of the second wave, the next movement would require validation through the formation of a clear 1-2 structure within Wave 3.

Confirmation of the bullish count also depends on the price making a new local high above the current range and then pulling back without breaching the recent lows. If that structure plays out, then the market would likely be in the early stages of a powerful third wave. Bitcoin has already made an 8% price gain after it dropped to a low of $98,200 following U.S. airstrikes on Iranian nuclear sites. The most significant upward move came on Tuesday, June 24, when reports of a Middle East cease-fire pushed Bitcoin up roughly 4%. At the time of writing, Bitcoin is trading at $106,330.