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Sanmi Adeagbo

2 May 2018

Forex Cryptocurrency

2-4 May Bitcoin price prediction - BTCUSD technical forecast

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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.

BTCUSD Elliott wave analysis, M30 (click to zoom)

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?

BTCUSD Elliott wave analysis, M30 (click to zoom)

$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.

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.

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