What is the possibility of BTC dropping to $1000 in the coming weeks? Just one big bearish move and we could see it drop there. The price chart pattern shown in the 31 May Bitcoin price prediction below shows this is very likely. What would you do?
Bitcoin, from technical analysis perspective, is not looking bright as expected since the turn of the year. Price continues to drop back to the bearish zone as is finding it difficult to reach previous highs as quick as one would have expected. Old highs are held while old lows are broken to make new ones – that’s the story so far this year. Price is never close to the $19500 December 2017 high nor the $17000 January 2018 high but broke below the $11000 December 2017 and $9000 January 2018 lows. A new low was formed at $5900 in February 2018 and price has already moved close to it twice – both in April and May 2018. The last bullish run was seen at the beginning of April, when price rallied close to $10000 but all that has already been eroded this month as price looks rather determined to break below $5900. If this happens, what next?. A new low of course. A new price technical pattern is emerging that shows the next low could be $1000.
Let’s review the last update where the chart below was used.
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.
Price dropped further afterwards to $7000 without hitting $8900 resistance level. What could happen next?. The chart below shows our latest BTCUSD Elliott wave analysis update.
31 May Bitcoin price prediction: why BTC could drop to $1000
The chart above shows the formation of a triangle pattern since price rallied from the last low at $5900 in February. Once a triangle is complete, we often see breakouts followed by huge momentum. On more occasions, we have seen price continued in the direction of the immediate prevailing trend (bearish in this case) and on much fewer occasions, we have seen the opposite happening. What we know is that, there is another huge move coming, which if $5900 is taken out, a drop to $1000 is next. Before the drop, we could see a rally to $9200. On the other hand, a strong break above $9200 could see price toward $12000 or above though this is less likely. But we have seen this market bring up a few surprises. Stay tuned for the next update.
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