Bitcoin has continued the upsurge which started on 8th February after price completed a bullish pattern. Now above 3,700, is BTC on the way to recovery?
February 18, 2019 | AtoZ Markets - The crypto market surged yesterday after seeing a corrective dip throughout last week. Following an upsurge on Friday, there have been talks of market recovery. This is probably the most anticipated scenario in the crypto world. Will prices recover from 2018 bearish onslaught or more woes would befall it? Since yesterday, Bitcoin has gained 4-5%%, Litecoin 3%, IOTA nearly 4%, Ripple 5% and Ethereum 13%, all on their way to test their January highs.
The flagship crypto, still maintains its over 52% dominance of the market. At the beginning of the year, it was believed that price would rally in the 1st quarter of 2019 and probably the 2nd quarter. Whether this rally would lead to a total recovery or would be another bounce off supply zones is yet to be seen. From Elliott wave perspective, since the 3,100 dip recorded last year, a 5- wave rally upwards of 6,000 should be the minimum before getting upbeat about a recovery. So far, price has been moving as expected as the 1st and 2nd subwave of this impulse wave rally ended at 3,100 and 3,300 respectively. The 2nd sub-wave ended with a zigzag pattern with an ending diagonal mouth. A bullish breakout was imminent as the chart below, used in the last update, shows.
Bitcoin technical analysis and important price levels
The chart above was used less than two days before the 8th February bullish breakout. It was written all over the chart, the idea of a bullish run above 4220. Price is expected to climb gradually on its way to recovery. We might not see such huge spikes like the 2017 bullish run and the ones before. There was a fast break upside as expected, and BTC is now exchanging in the excess of 3,700. The chart below shows the new update.
From 3,300, the 3rd sub-wave has started. The move should continue above 4200 and further into 6,000 if an impulse wave leading to recovery is what price is doing. Alternatively, the current rally might end up as another corrective bounce - a zigzag pattern most probably. This zigzag pattern should be limited at 4,500. The sell-off might continue below 4,300-4,500 resistance zone.
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