Bitcoin continues its outstanding performance as it managed to breach the $6000 barrier this weekend, it is currently up 200% from the 07/16 low for a total rise of 500% for this year. The rally from the $1830 low is represented by 3 swings subdivided into 5 waves rally, then 3 waves pullback followed by another 5 waves.

This type of move can be either labeled as 3 waves Zigzag Structure which can end around equal legs area $6100 – $6800 or it can be part of a 5 waves move which means BTCUSD still needs to extend further toward $8000 as the most powerful 3rd wave move usually reaches the 1.618 Fibonacci extension level.

To be able to identify which scenario will take place, we’ll wait for the next pullback to take place then depending on the structure and strength of move we’ll know if it’s only correcting the cycle from 09/15 low or the full cycle from July low has ended.

Currently the cycle from $2972 is still in progress as 5 waves ending diagonal, which already have enough number of swings to call it completed. However, the target for wave 5 can be calculated in 3 different ways and in that case the digital currency can still see more upside in the short term as we have these targets :

We can also use the internal structure in the 1H chart to calculate the move higher, which is expected to take place as 7 swings double three structure looking to reach equal legs area $6837 – $7093 as long as it remains above the $5101 low.

Consequently, Bitcoin shorter term cycles are still calling for more upside but the bulls needs to be careful about chasing the long side here as the cycle is mature and can turn anytime soon after hitting the mentioned targets above.