Just before the month of May ends, the bears are taking hold of the market. Bitcoin has, therefore, dropped to $8,000 in about 8 hours. What can traders and investors look forward to in June?
May 31, 2019 | AtoZ Markets - Bitcoin fell by $1,000 on Thursday after hitting $9,000 on Wednesday. With this move, it now looks very likely that the bears will take the last shot in May. Currently, the flagship cryptocurrency has retraced a bit to $8,300. The Thursday fast drop was seen in all the major cryptocurrencies as the market was set back by about $14 billion in less than 8 hours. However, overall, the month has been impressive for the market as the bulls gradually build on the December 2018 lows. Meanwhile, the current fall has created a big bearish daily candle on the BTC price chart. It seems price is starting a bearish correction and early in June, BTC could fall further.
BTCUSD forecast: what to expect in June
The month of May ends today and BTC might not recover in time and therefore ends with a bearish day. Since the April bullish breakout, weekends have mostly come with improved volatility. In the first week in June, the bearish correction will be expected to continue toward $6,500-$7,000 price zone. However, historically, Bitcoin has shown to perform better in June. This could give the bulls a huge lift and prevent deep sell-offs. In the last seven years, BTC has recorded significant gains in June five times with the best performance of 27.8% gain seen in June 2012. In June 2016, BTC recorded nearly 26% gain while the worst performance came in June 2013 with a 30% dip. In the last year's bearish trend, BTC recorded another loss of nearly 15% in June. It remains to be seen how it will perform but with the current bullish trend, the bulls seem to have an upper hand.
Bitcoin price analysis: Elliott wave perspective
The 4th wave ended with a sharp triangle pattern. the 5th wave was expected to extend to $10,000-11,000 zone. Currently, the price has only hit $9,000 and if the current push extends further, we will have to believe the 3rd wave and not the 5th wave just ended. Another factor to consider is that most altcoins have not yet completed their respective impulse wave patterns from their respective lows. Bitcoin Cash, Ethereum and Ripple are expected to continue upside after the current dip. Going by this, the chart below shows BTC's 3rd wave just completed and the current dip could just be the start of the 4th wave.
This wave analysis looks more suitable for the current price activities and the general cryptocurrency market outlook. The current dip could continue to $7,000 or slightly below before the next upsurge hits $10,000-$12,000 critical zone. If this happens, the price will have recovered 50% of the entire 2018 bearish trend.