Bitcoin is currently floating above the $8,000 round level. The minor recovery might go higher to retest the $9,100 resistance level. The following Bitcoin price prediction looks at what could happen next.
October 03, 2019 | AtoZ Markets – There has been a bit of relief in the cryptocurrency market after the massive dips in the last days of September. Digital assets have gained about $15 billion since 30th September. The dip saw Bitcoin hit $7,500 – its lowest price since June. At $149.45 billion, according to Coinmarketcap, Bitcoin currently holds 67.6% of the entire market value.
The question on the mouth of everyone that is interested in the cryptocurrency market is this: where is the next bottom? Bitcoin last bottomed at $3,100 in December 2018 after a 12-month bearish run.
Bitcoin price prediction: 2-years price history
What is very interesting is the fact that the 2018 bearish run was quite similar to the current bearish run. In 2018, after the first dip from $19,800 to $6,000 in just about a month, BTC went sideways to complete a descending triangle pattern with a neckline at $6,000. We all know how the breakdown happened. Eventually, BTC hit $3,100 in just about a month after.
From December 2018 to June 2019, a strong bullish phase emerged from $3,100 to $13,900. Just as it happened in December 2018-to-January 2019, BTC quickly dropped to $9,100 from $13,900 in just about three weeks. From mid-July to late September, it went sideways to complete a descending triangle pattern. It broke below the $9,100 neckline and hit $7,750. If we should go by what happened in 2018, the bullish trend will soon resume. Where will the bottom be this time?
Bitcoin price prediction: Elliott wave analysis
In the most recent updates, we highlighted two zones as potential reversal zones. First was at $7,200-7,400 and the second at $5,400-5,500. The corrective pattern from $13,900 is completing a double zigzag pattern. In the last update, we used the chart below to show the large correction could end with regard to the support zones mentioned above.
The minor rally from $7,750 was identified as the wave (b) of Y (circled) of the double zigzag pattern. Not much has happened since the last update as the new chart below shows.
The correction could continue to $9,100-9,300 which is both a major resistance zone and a Fibonacci confluence zone. However, wave Y is expected to follow if wave (b) blue channel is broken downwards. The next target levels are the major support zones below $7,750. If the price now bounces off any of these zones, we might be having the next bottom. The $5,400-5,500 zone is more likely though.