Bitcoin is advancing back 5200 after dropping below 5000 last week. Is the dip over?
April 17, 2019. AtoZ Markets - The flagship cryptocurrency is currently the top gainer among the majors since the April bullish breakout. After hitting close to 5500, the crypto fell sharply to 5000 but has recovered much of that. Bitcoin is showing technical signs of bullish continuation which should see it advance into the 5800-6100 important price zone. From a technical perspective, it's believed that once price bridges this zone, a new bullish phase is confirmed.
Crypto winter is over?
According to a renowned Forbes contributor, Clem Chambers, Bitcoin and the crypto market have completed the winter phase. The analyst has compared Bitcoin to Gold and believes that the former will be more recognised and more valuable in the future. He added that many investors will now see Bitcoin as a better hedging asset than Gold. They probably wanted to see when the 2018 crypto winter will be over. With the April surge taking Bitcoin into the pre-November breakout price levels, investors are now upbeat about the future of the digital asset. Mass adoption is widely expected to trigger a huge surge and it will come sooner than later.
In price terms, Chambers believes $10,000 is impossible for Bitcoin in 2019 but $6,000 is going to be an easy target. The market is getting closer to the pre-2018 crypto awareness and interest.
Bitcoin technical analysis and important price levels
From Elliott wave perspective, Bitcoin might have started a new bullish cycle. An impulse wave from 2018 low of 3,100 is ongoing. In the last update, we used the chart below to represent the wave interpretation of BTCUSD pair.
The first impulse wave from 3100 is still ongoing with price at the 3rd sub-wave of the 3rd wave. A dip to 4700-4500 was expected to complete sub-wave iv of wave 3. How has price behaved?
Wave iv seems not to have been over. A bearish leg to 4750 or 4500 is still very much likely until the price breaks above 5500. The major support remains at 4225. A dip below 4225 might turn the medium-term bias bearish. A break above 5500 will see price aiming 6000 or higher. We will see how this wave structure and forecast evolve in the coming days and weeks.
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