Bitcoin has dropped back to $9000 and perhaps below in the coming days. The following 2-4 May Bitcoin price prediction looks at BTCUSD based on Elliott wave theory.
02 May, AtoZMarkets - At the beginning of this week, BTCUSD rallied to $9500. If price had rallied above $9750 top, one would have suggested an easy break above the $10000 mark. Price faltered instead. BTCUSD traded below $9000 yesterday and might even drop further. The two closest resistance levels are $9500 and $9750. A break above these levels should set price free further upside. The nearest support price is $8600, a bridge below should send price further downside to $8000 or below.
Price has a higher chance of dropping further than doing otherwise according to our Elliott wave forecast. We had in the previous updates discussed an incoming bearish corrective move in all the majors - BTC, LTC, XRP and ETH, after the surge seen in the past weeks. The rally was impulsive and therefore should be followed by a bearish corrective move -according to Elliott wave theory. Since the completion of this pattern, BTCUSD has dropped nearly 10%. Will it drop further? Let's review the last update.
In the last update, the chart below was used.
The chart above shows the progression of a bearish correction. A zigzag pattern could complete as price is very much likely to continue downside by breaking below $8600 – wave (b) low. A dip to $8000 is still likely in the coming week. If price breaks above wave (a) high, it will have a higher chance of breaking above $9750 high and $10000 would be almost impossible to miss.
Though wave (b) took a higher high but the idea of an a-b-c correction downside is still maintained. The chart below shows what we have at the moment.
2-4 May Bitcoin price prediction - what next?
$8600 (support) and $9750 (resistance) are two significant price levels. Price is expected to break out of one of them to decide the next direction. A break above $9750 would mean rally continues above $10000 while a dip below $8600 would mean the drop continues to $8000 or below. Price has a higher chance of breaking below if there is enough momentum. If it continues sideways between these two levels, we might have a sideway continuation pattern and price will have a higher chance to continue upside. Stay tuned for the next update.
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