Bitcoin price slumps below $7,000 to resume bearish trend

Bitcoin drops below $7,000 and now close to testing the $6,600 support level. The following Bitcoin price prediction is based on the Elliott wave theory.

December 17, 2019 | AtoZ Markets – The cryptocurrency sell-off in the second half of 2019 continues. After a very bearish October and November which saw the market lose around $50 billion, there were minor recoveries in the last week of November. However, it seems the correction will not grow significantly as the selling pressure intensifies this month. Since June 2019, the market has now lost $200 billion after gaining over $250 billion in the first half (H1). Investors are feeling a bit disappointed with the way Bitcoin together with the entire market is ending the year. However, it is expected that a significant net gain will still be realized in 2019 despite the H2 fall.

General crypto market performance (market capitalization)

The cryptocurrency market cap chart below is very similar to the Bitcoin price chart. It’s not a surprise since Bitcoin holds over 66% of the entire market share. We can then primarily say that the market depends heavily on the performance of Bitcoin (Charting tools from TradingView).

Bitcoin price prediction

The chart above shows that the current dip is a corrective phase. However, this phase is lower in degree compared to the 2018 bearish trend which saw the market lose over $670 billion. Currently, the market is dropping below the 61.8% Fibonacci retracement of the 2019 H1 surge. Meanwhile, this might extend to 78.6%. This means that the combined market cap might hit $150 or lower. In the end, the H1 2019 recovery trend should resume. Hodlers will have to be patient and maybe we are approaching another zone to buy low.

Bitcoin price prediction: Elliott wave analysis

Bitcoin has lost over 7% in December so far after another price slump on Monday and we looked at the 5 reasons for crypto market crash. In the previous updates, we expected a minor recovery to $8,500 and its neighbourhood. However, the price went sideways and was completing a triangle pattern as we showed in the last update with the chart below.

Ultimately, a dip to $5,000-6,000 price zone should happen next especially if a break below the triangle happens. Maybe there will be a lift at the price zone eventually. We will have to see how Bitcoin price would react. Meanwhile, the chart below now identifies a breakdown below the triangle pattern.

Bitcoin price prediction

With this breakdown, the likelihood of the Bitcoin price hitting $5,000-6,000 is now much higher.

Read Also: GBPUSD Elliott wave analysis- Sterling extends bearish correction








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