July 31, 2019 | AtoZ Markets - Last week ended bearish for Bitcoin. This week has been a bit different so far. The flagship digital asset was pulled from the $9,100 low, after it touched it briefly, to $10,000. However, this is not to say that the bearish correction is finally over. That will depend on the bulls' ability to break some barriers upwards. Furthermore, there is a possibility of a double bottom pattern from $9,100 with a neckline at $11,100 as the bulls build a foundation to launch the next assault. With the current minor rally to $10,000, BTC has gained about 9% this week so far. Before $11,100, the first barrier to conquer is the $10,200 resistance level.
The crypto market in terms of capitalization is almost unchanged compared to the end of last week. Bitcoin still holds 64.6% dominance of the market. The altcoins have not been able to fight back as they lack massive triggers to cover up. The next three cryptos, Eth, XRP and LTC have a combined market capitalization that's around 25% of BTC's. Does that spell the gap better? If BTC continues to widen its dominance, its hard-forks LTC and BCH might catch up with ETH and XRP.
Bitcoin price prediction: Elliott wave analysis
The 2019 bullish trend started in December 2018. At $13,900, we identified the end of wave (1) of the impulse wave that is expected to lead to a complete recovery and make new all-time highs. The current dip since late June is expected to be wave (2). Though wave (2) completed a double zigzag pattern at $9,100, there is no bullish reversal pattern yet to confirm the continuation of the bullish trend. In the last update, we used the chart below.
If wave (2) had ended, wave (3) suppose to emerge with a bullish impulse wave above $11,100 and the wave (2) channel. That has not happened yet and an alternative view of a more complex wave (2) toward $8,500 or $7,200 arose. This scenario is still valid as price stays above $9,100. The chart below shows the emergence of a double bottom reversal pattern with a neckline at $11,100.
If the current surge continues above the $11,100 high to $13,100 (above the channel), the bullish trend should continue toward the $19,800 all-time high. In as much as price remains below $11,000, lower prices at $8,500 and $7,200 can be reached.