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Bitcoin price bullish forecast after retesting $5,000

Bitcoin price bullish forecast after retesting $5,000

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.

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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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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ, nor should they be attributed to AtoZMarkets.

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