Bitcoin lost about $3,000 in less than a week and about to test the $9,700 support level. The following share technical insights based on Elliott wave theory.
July 17, 2019 | AtoZ Markets – The cryptocurrency market is currently bearish. The market has lost over $95 billion dollars in the last three weeks. In the same time frame, Bitcoin price has dropped nearly 30%. However, its market dominance increased to 66% as the altcoins performed even worse. The market is in a bearish corrective phase after the massive surges that started in December 2018.
After the massive surges, a smart trader or investor would have expected that the cryptocurrencies will have much deeper corrections than the minor dips on the way up. Bitcoin hit $13,900 in June 2019 but now trades at $10,400 – less than 50% retracement of the rally from $3,100 to $13,900.
Bitcoin analysis: important price levels
During the weekend, BTC price dropped from just below $12,000 to $10,300. Today, however, the price recovered a bit to $10,600 after dropping below $10,000 for the first time in a week. There is room for further dips. BTC is expected to drop below $9,700 which is the current lowest price in July. Currently exchanging for $10,500, price is close to a fresh low in July. If the price is well supported above $10,000, the nearest critical resistance levels to watch out for are $12,000 and $14,000.
Bitcoin price prediction: Elliott wave theory
Based on the Elliott wave theory, price is working out a bearish correction after it completed a 5-wave advance to $13,900. The current dip is expected to be wave (2). 2nd wave often corrects up to 50-61.8% of the 1st wave. In this case, 50-61.8% Fibonacci retracement levels fall at $8,500-$7,200. Thus, wave (2) could go as deep as $7,200 before price returns upside. In the last update, we identified wave (2) as a possible double zigzag pattern with the chart below.
Price has continued downside after the breakout just as expected. It could hit the $9,000-$8,500 first bearish target before the $7,200 target. The new chart below shows the progress of the double zigzag wave (2).
The double zigzag is not yet complete. Wave (c) is expected to continue to $9,000-$8,500 before wave (3) could resume. However, a hit of $7,200 is also an option. Wave (3) is expected to make a new all-time high.