Bitcoin continues below $9000 amidst more bearish pressure. The following 22-24 May Bitcoin price prediction looks at BTCUSD technical forecast based on Elliott wave theory.
For a much longer time this month, Bitcoin has stayed between $9000 and $8000 making them resistance and support levels respectively. If price breaks above $9000, then a rally above $10000 is very likely, likewise a drop to $7000 or below should be expected if price breaks below the $8000 support. In as much as price stays below $9000, the bearish momentum could resume anytime soon that will drive prices lower.
In Elliott wave theory terms, we were expecting a 3-wave bullish correction at $8900-$9000 before the larger bearish correction resumes to $7000. At this point, our forecast is still valid but price might go in any of the direction – break above $9000 or drop below $8000. The chart below was used in the last update.
The last leg of wave (a) is near completion within a channel. A break above the channel could lead to wave (b) around $8900-$9200. If the rally is corrective, we could see price dropping to $7000 afterwards.
Price broke above the channel as expected and rallied to $8600 before dropping back to $8250 (current price). It could still continue upside as the rise and drop could be wave a-b and the wave c rally could complete the bullish correction to $8900 as expected. The chart below shows the new update.
22-24 May Bitcoin price prediction: what next?
I still maintain the original scenario. The current wave (b) rally looks shallower than expected (far from $8900). Unless price breaks below $7900, it still has a high chance of completing wave (b) at a higher level ($8900). If it otherwise drops below $7900 low, then I will adjust wave (b) lower and expect price to $7000 bearish target. The manner of the drop to $7000 (if it happens) would determine if the bullish move would resume back to $10000 or higher . Stay tuned for the next update.
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