Bitcoin is still on course for a massive rally toward $140,000 by the end of 2025, according to Elliott Wave-based technical analysis. But while the near-term outlook remains bullish, the forecast also includes a significant downturn in 2026, aligning with historical wave patterns.
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BTC Price Could Reach $135K–$140K by Year-End
Despite recent price dips, market analysts using Elliott Wave Theory remain optimistic. According to one expert from a crypto financial services firm, Bitcoin’s current movement fits within a long-term five-wave bullish structure. The current correction — a 4% weekly drop that took BTC below $112,000 — is considered a natural retracement before the next impulse wave.
Analysts suggest this is part of Wave iii (of a larger Wave 5), targeting $135,000–$140,000 before the end of the year.
BTC recently saw profit-taking near the $120,000 level, especially by long-term holders. This sell-off is interpreted as part of the broader wave structure, not a signal of a long-term top.
Elliott Wave Suggests a 2026 Downturn Is Coming
While bullish in the short term, Elliott Wave models are also projecting a corrective phase starting in 2026. After the five-wave impulse completes, a three-wave bearish correction is expected, potentially leading to a prolonged bear market.
This correction phase aligns with Elliott Wave’s core principle: after every strong rally comes a retracement.
Understanding Elliott Wave Theory in Crypto Markets
Elliott Wave Theory, developed in the 1930s, proposes that market prices move in repetitive cycles influenced by collective investor psychology. A complete cycle includes five waves in the direction of the trend, followed by a three-wave correction.
This model has been widely used to forecast long-term crypto price behavior, offering insights beyond basic chart patterns or news-driven sentiment.
Short-Term Optimism, Long-Term Caution
Bitcoin remains on track for new all-time highs in 2025, driven by institutional demand, macro trends, and technical momentum. But traders should prepare for a challenging 2026, as wave cycles point toward an inevitable correction after the bullish wave concludes.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.