Bitcoin dropped below $8000 yet again. Will price dip further or a strong rally would be seen? The following 27-28 March Bitcoin price prediction looks at BTCUSD based on Elliott wave analysis.
27 March, AtoZForex - Bitcoin continues to drop after price rallied from $7300 to $9100 in the past weeks. BTC is now trading less than $8000 again. It's important to look at the emerging wave pattern, perhaps we might have an idea of what could happen next - at least in the short term. A smart Crypto trader would have known before now, that the best was to trade BTCUSD is to wait for the next dip to buy the next rally and sell at a higher price before the next dip. This method has been very profitable since the bearish correction took over. This can be easily done using Elliott wave theory. Elliott wave theory is one of those technical methods that help us identify tops and bottoms, high swings and low swings, trend and corrections. If you follow my Elliott wave analysis very closely, you might have noticed this to be very true.
In the updates before the last, we were able to identify yet another bullish reversal zone (between $7000-7500). Price rallied as expected. It was clear on the chart that price would rally to $9000 before the next dip to $8000. All these played out amazingly well. In the last update, I tried to figure out where the next rally could be. The chart below was used.
BTCUSD Elliott wave analysis, M30 (click to zoom)
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.
What do we have now?
27-28 March Bitcoin price prediction: what next?
BTCUSD Elliott wave analysis, M30 (click to zoom)
The chart above shows price dropping slowly below the corrective channel. The dip we expected is running to completion. We need price to show signs of commitment toward the expected upward direction. A break above $8200 would do for a confirmation as we yet might get another bottom right. If price doesn't commit upside but broke downside instead, a dip below $6000 is very likely to happen. Stay tuned for the next update.
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