Bitcoin is trading a bit above $5,000 after an 11% dip from $5,600. What could happen next? The following insight is based on the Elliott wave theory.
29 April 2019 | AtoZ markets - The crypto market has spent the last week of April on the downside with Bitcoin having over 11% dip to touch $5,000 on Friday. Currently, the flagship digital asset is trading at $5,125 and looks likely to drop further before the next bullish breakout happens.
Bitcoin: the road to recovery won't be straight
Bitcoin has been on a real recovery after bottoming at 3100 in December. At the start of April, the price quickly turned above 4200 to hit the highest in over five months at $5,600. At $5,600, Bitcoin gained about 80% since it bottomed in December. In spite of the current dip, BTC still has a net 60% upsurge from 3100 bottom. The total market cap has dropped a bit in the last few weeks. Meanwhile, Bitcoin has left most cryptos behind in the current bullish phase, especially since the April upsurge. Only a few cryptocurrencies could keep up with the pace of the number one crypto. This has made it accumulate more of the total market share - added 4% since January 2019. With 54% market dominance and bullish chart structures, Bitcoin near-term direction remains to the upside.
Bitcoin technical view - a bullish development?
Using Elliott wave theory, it was believed that if the price had bottomed at 3100, the first signal was an impulse wave rally. From 3100, a bullish impulse wave has been developing. The 3rd wave is still in motion. In the last update, we counted the end of the 3rd sub-wave of wave 3. We expected a 4th sub-wave dip to retest 4700-5000 as the chart below (used in the last update) shows.
Price is currently making a re-test of this support zone to confirm the wave count above. Once the 4th sub-wave is over, we will most likely see price advancing toward 5900-6000 strong resistance zone where wave 3 could end as the chart below shows.
Strong and consistent dips into the wave 1-2 channel territory are not good for the bullish story. A dip below 4240 top will turn BTC price bias downside. In as much as price stays above 4700, a rally to 6000 is the next in line as the bullish phase started in style.
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