Bitcoin jumps above $7,000 on Wednesday and about to break above a critical trendline. The following Bitcoin price analysis is based on the Elliott wave theory.
December 19, 2019 | AtoZ Markets – After dropping slightly below the $6,600 support level on Wednesday, Bitcoin price quickly bounced and returned above $7,000. This would give the bulls some air to breathe before the sell-off continues. There is still some way to go if the market would stage a reasonable recovery. The current surge almost hit $7,500 but has retreated to $7,150 on Thursday. As the year ends, we might see the current surge trying to breach above the $8,000 one more time after multiple failed attempts two weeks ago.
In the last 48 hours, Bitcoin has outperformed the Altcoin aggregate thus increasing its dominance to 68.2% according to Coinmarketcap. The premier crypto has gained 4% in the last 24 hours at the time of writing. The entire market has also gained over $6 billion in the last 48 hours. The entire crypto market cap now stands at $189.6 billion which is still $195 billion short of what we had in late June. However, overall, the market is still ending the year at a net positive. At the current time, Bitcoin is up by 94% from January 1 while in the last 365 days, it has gained 40%. However, if the current recovery does not grow above $8,000, BTC price will most likely record a negative December. At the current rate, Bitcoin is down by 3.9% in December.
Bitcoin price analysis: Elliott wave theory
Technically, the Bitcoin price might hit below $6,000 between December and February. Meanwhile, once the Bitcoin halving scheduled in 2020 approaches, the price might start another big recovery. It’s not very clear whether reward halving would cause a major recovery. However, it seems to be the bullish trigger most crypto bulls look forward to. In the last update, we used the chart below (Charting tools from TradingView).
The entire bearish phase from $13,900 is completing a double zigzag pattern. The second zigzag Wave Y started at $10,500 and was completing an impulse wave we expected to hit $6,000 or below. However, the price only hit $6,475 before the current lift. The new chart below shows what we expect next.
The dip to $6,475 completed wave (a) of Y. The current rally, Wave (b) of Y should therefore hit $8,500-9,000 before wave (c) of Y pushes further to $4,000-5,000. However, if the current rally is resisted below $7,700, we might see an ending diagonal completing at the $5,500-6,000 zone. Eventually, a big bounce toward $8,500-9,000 would follow. In all, it seems Bitcoin price has not hit the bottom of the current bearish phase.