Bitcoin lost almost $1600 in about a week after forming a resistance at $10000. The following 14-16 May Bitcoin price prediction looks at BTCUSD technical forecast based on Elliott wave theory.
In the first week of this month, Bitcoin which formed a base around $8800 was at the verge of completing a triangle pattern. At the end of this pattern, price rallied fast to $10000. Bitcoin hit $10000 after trading below it since 8th March. BTC traders were optimistic of further rallies but price would soon drop faster than we have seen since the new rally started.
In Elliott wave terms, price rallied to complete an impulse wave. The triangle pattern formed in the first week of this month would have served two purposes – first, to give a bullish signal and second, to warn of an imminent reversal. Both purposes happened to play out just exactly. The triangle pattern is one of the corrective patterns discussed in Elliott wave theory. It often precedes the last leg of a larger degree pattern and therefore warns of reversal. Triangles are often seen in the 4th wave of an impulse wave, wave (b) of a zigzag, wave X of a double zigzag etc.
Aside the wave pattern, triangles have often proved to be useful in the Crypto market. Many huge Crypto market moves we have seen were preceded by the completion of a triangle pattern. After all these, what should be expected next?
The chart above the wave analysis of the rally from $6500 to $10000 after price completed a larger degree correction. The rally completed an impulse wave which should be followed by a 3-wave bearish corrective dip and this is already happening. From a large degree, the 3-wave dip should be followed by a much stronger rally. Wave (a) is expected to slightly drop below $8000. Wave (b) corrective rally should follow. If it happens, sellers can look for more opportunities to $7000. Not sure whether price would take the last low out and dig toward $5000 or would be upheld to stay above $7000. We will have to see how this will play out. I think BTC would dip further to $7000 and if price still appears corrective from $10000, then a rally above $15000 is in the cards. Stay tuned for the next update.
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