Bitcoin has extended its losses after an initial impressive move to $10000. The following 16-18 May Bitcoin price prediction looks at BTCUSD forecast based on Elliott wave theory.
Bitcoin could not sustain the initial rally to $10000 in April. It now trades below $8500 after making a new intraday resistance at $8900. Many analyst believe it would rally again like we saw in April. If that happens, then $10000 should be taken out. How likely is this?
In our previous Bitcoin Elliott wave forecast updates, we expected price to drop after the rally in April emerged into an impulse wave. According to Elliott wave theory, a correction should follow an impulse wave. We have seen this play out many times in the Crypto market. So, the drop was highly anticipated. In the last update, we used the chart below.
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
What happen afterward? The chart below shows an update of the last forecast.
16-18 May Bitcoin price prediction: what next?
Wave 4 went higher than we had in the last update but price has not moved into the territory of wave 1 thereby validating an impulsive wave (a). Price could drop further to $7750 to complete wave (a) before wave (b) bullish correction. Price could play out differently, but this is a high likely scenario. A trader looking to short might want to wait for the next correction – wave (b) while a buying trader might wait till the end of the deep correction at wave (c). We will see how BTC plays out in the coming days and then adjust our forecast to fit in. Stay tuned for the next update.
Do you have other views in contrast to the ones listed or you want to compliment them further? let’s know by your comment below.
Don’t forget to share this analysis with people that matter to you.