Bitcoin drops from $11,000 to trade slightly above $10,000 on Monday. Will the recovery continue? The following share insights based on Elliott wave theory.
July 22, 2019 | AtoZ Markets – The momentum and volatility in the cryptocurrency market have dropped a bit after big moves earlier in July. Bitcoin hit $9,100 last week – its lowest since June. At the start of this week, price bounced and made a recovery to $11,000 yesterday. However, a dip to $10,200 has now followed. Bitcoin has therefore lost about 2% in the last 24 hours at the time of filing this report.
In general, the crypto market has had quite a good recovery after it lost over $120 billion between late June and mid-July. Bitcoin still holds a huge 65% dominance with $183 billion in market capitalization. The bull will have to force a move above $12,000 to have a chance of winning back the recovery race. From technical indications, the dip from $13,900 to $9,100 looks like a retracement of the 2019 bullish trend. At the end of a correction, the trend resumes. In this case, the bullish trend might resume stronger than the rally to $13,900. With this possibility, some have predicted a $25,000-$50,000 target for Bitcoin if the bullish trend continues with another phase.
Bitcoin analysis: important price levels
To the upside, BTC has to break above $12,000 and the $13,900 June high. The next price targets is $17,200 before the all-time high of $19,800. to the downside, however, the correction might go deeper to $7,200 before the trend resumes.
Bitcoin price prediction: Elliott wave analysis
From the perspective of the Elliott wave theory, the dip from $13,900 is a corrective wave 2 of the rally to the same level. Wave (2) could go deeper to $8,500 (50% retracement) or $7,200 (61.8% retracement) before wave (3) kicks off. At $9,100, the dip is short of the 50% retracement. However, the price completed a perfect double zigzag pattern at $9,100 and might just be enough for wave (2) as expected in the last update where the chart below was used.
To confirm the end of wave (2), at least an impulse wave rally should break above $12,000. There has been a significant change as the new chart below shows.
The first push did not hit $12,000 as required before dropping to the current price. The wave count above looks more appropriate. A break above $11,100, $12,000 and the channel are needed to complete the first wave of wave 3. Conversely, if the price remains below $12,000, the sell-0ff might continue to $7,200.