Bitcoin Cash bearish correction extends below $400. Where could the bearish move end?
June 11, 2019 | AtoZ Markets - The cryptocurrency market continues downside as June shows red across the board. Apart from Litecoin that has a net gain this month, other cryptos including Bitcoin are below their respective May highs. Bitcoin Cash currently trades at $382 - its lowest price in over two weeks. Meanwhile, the correction doesn't look to be over yet from the perspective of technical analysis.
After an impressive performance that made Litecoin the only net gainer in June so far, the cryptocurrency has ascended to the 4th position on coinmarketcap based on market capitalization. Bitcoin Cash has therefore dropped to the 5th position with $6.84 billion losing over $1.5 billion since May 30.
Bitcoin cash price (BCH) prediction: Elliott wave perspective
From the perspective of Elliott wave theory, BCH is evolving into a bullish impulse wave pattern. The same pattern is seen on Bitcoin, Litecoin and even Ethereum. This pattern signifies that the bearish trend could have ended in late December. BCH like many other cryptos in the top 10 has recovered over 30% of the entire 2018 bearish trend. Despite the huge rally which saw BCH hit $480 in May and 545% gain since December, we expected that a dip was imminent. In the last update, we reckoned from our Elliott wave count that BCH was about starting the 4th wave of the bullish impulse wave. The chart below was used.
At this time, the 3rd wave was in the last stage and a bit below the $500 mark. Usually, the 4th wave corrects 38.2% of the 3rd wave. Therefore, the current dip as the chart below shows could go deeper to $340-300.
340-300 is first bearish target zone. Below this zone is the low of the 4th sub-wave of wave 3 at $227. At the end of the 4th wave, the 5th wave should lead the price above $500 and to $600 or more. The breakout above the 4th wave channel is the minimum requirement to consider the start of the 5th wave. The first bullish breakout from the bearish trend is not yet over. At the end of the impulse wave, we will still expect another dip which could be deeper than any other since the current bullish trend started. The bullish trend is still intact nevertheless.