Bitcoin is making a short term bearish retracement after a rally above $9000 last week. The following 25-27 March Bitcoin price prediction looks at BTCUSD technical forecast based on Elliott wave theory.
25 March, AtoZForex - Last week was bullish for Bitcoin just as expected. Price rallied to make nearly $2000 profit after completing what looked like the long term wave 2/4. The bullish move has not gathered enough momentum to ascertain the continuation of the bullish trend that took BTCUSD by storm before mid-December 2017.
According to Elliott wave theory, price advances or declines in 5-waves and corrects in 3-waves. It further defines these 5-waves and 3-waves with exact patterns guided by rules and guidelines. In the last update, we expected a rally to $9000 followed by another dip to $8000 before the bullish trend resumes. The chart below was used.
BTCUSD Elliott wave analysis, M30 (click to zoom)
The channel bullish breakout is an early confirmation of the end of wave v of (c) of ii. If this move is genuine, we should see price rallying to $9000 followed by an intraday corrective dip to around $8000. There is also a possibility of a rally to $12000. It’s at this point BTC Hodlers should dream again. If price falls below the trendline and breaks below $7200 instead, then a further dip below $5000 is very much likely.
Price has moved just as expected. The rally continued last week slightly above $9000 and now dropping to $8000. What should we expect next if this finally happens?
25-27 March Bitcoin price prediction: what next?
BTCUSD Elliott wave analysis, M30 (click to zoom)
The chart above shows what has happened since the last update. After price completed what could be the long term bearish correction above $7000, a 5-wave rally followed to show a real bullish push. A 3-wave correction is in motion already and could continue this week. This move is expected to complete around $8000. If price moves as expected, a strong rally could follow to $10000 and beyond. Conversely, if price dips below $7000, there is no stopping the bears. Price would have a higher chance to continue downside and drop far below $6000. Stay tuned for the next update.
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