Bitcoin headed back to $6500 today after a wild drop in the last days of last week. The following 16-17 Bitcoin price prediction looks at BTCUSD based on Elliott wave theory.
From technical analysis perspective, Bitcoin is getting ready for a big rally. Some of that has been seen so far today as price gain more than $250 to currently be trading between $6500-$6600. In the last update, we looked at the possibility of an ‘inverted head and shoulder’ pattern. This pattern is a reversal pattern and price often goes in the opposite direction if it breaks out of the pattern. From Elliott wave theory perspective, an important wave pattern completed at $5800. At the end of this pattern, price rallied swiftly to $6800 and failed three times to break above it before dropping back to $6000. The current rally is playing out just as we expected in the last update where the chart below was used.
The chart above shows price dropping to $6200. There is a clear inverted head and shoulder pattern with neckline at the $6800 resistance. Price is expected to drive upside, break above $6800 and rally to $7300 in the coming days. $8200 is the next bullish target after $7300 if price breaks above $6800 as expected. If the head and shoulder is not activated and price drops below $5800, the next bearish target is $4000.
16-17 Bitcoin price prediction: what next?
The chart above shows the reversal patterns with base at $5800 and neckline at $6800. Price is now rallying back to $6800. A breakout above the $6800 neckline, we should see price advance further to $7800 . Once price gets to the bullish target, we can check if it’s corrective or impulsive. The former would see price limited upside before a fast drop while the latter would assume further rallies above $7800 up to $9000-$10000. Stay tuned for the next update.
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