Bitcoin made a slight bullish recovery in the later part of last week but resumed downside this week. How far will price go down? The 25 January Bitcoin price prediction looks at BTCUSD forecast based on technical analysis – Elliott wave theory.
25 January, AtoZForex – The bearish move that continue this year is still much around. With authorities looking at regulating the market, it looks like the bearish correction will continue. Technically, it appears so. From $9200, price rallied to $13000 in the second half of last week – nearly 42% increase. Much of the profit had been eroded this week with price once reaching below $10000. At the moment, price stays above $11000 but the bearish move still persists. How long can this last?
In the last update, the chart below was used.
A corrective zigzag pattern is about to complete. The reversal zone is set at $7500-$8000. Price may be on its way above $25000 if this pattern holds and reverse at this zone. The dip to this zone could still happen.
In the last update above, a zigzag corrective pattern was emerging from close to $20000 (all-time-high). The (c) leg was expected to be a motive wave (most probably an impulse wave). Thus, a dip to $7500-$8000 was highly expected to happen. But looking at how price has been reacting, it looks like the (c) leg is more complex than an impulse wave needed to complete the correction to $7500-$8000. A double zigzag wave (c) is emerging instead, as shown in the chart below.
25 January Bitcoin price prediction – BTCUSD Forecast
With the chart above, the correction from $19800 peak could be a double zigzag pattern – W-X-Y wave structure. The last leg – wave Y, is shown above. Price started today with a bit of bullish correction that form a bearish flag pattern. At the breakout below, price is expected to head to $8000 or even below at $5000. That may not sound good for BTC investors for now. A strong bullish resurgence could happen afterwards.
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