Bitcoin dropped below $10,500 after it failed to break above $11,000. The following Bitcoin price prediction is based on technical analysis.
September 07, 2019 | AtoZ Markets – Bitcoin was denied a bullish breakout above $11,000 again. Instead, a fast dip to $10,200 happened on Friday before the weekends. On Saturday, BTC is quietly retracing the dip and then went sideways between $10,400 and $10,300 at the time of writing this report. The Friday dip was very fast and could lead to more dip below $10,000 in the coming days.
Since BTC price started the current corrective phase in late June, it has gone sideways and is completing a triangle pattern. The bulls and bears continue to push and pull it between themselves and thereby establishing price boundaries to create a pattern with a narrowing end. Since the bulls surrendered their lead at $13,900, two higher lows support levels have been established at $9,100 and $9,350. Likewise, two lower highs resistance levels have been established at $13,200 and $12,950. The third lower resistance and higher support levels are probably on the way before a massive breakout will happen. Since the prevailing trend is bullish, as the chart below used in the last update shows, the breakout favors the bulls more.
The triangle is getting narrower at the mouth. If a bullish breakout does happen afterwards, the next target is expected to surpass the $19,800 all-time high. $22,500 and $35,000 are probably the next targets to hit in the long run.
Bitcoin price prediction: Elliott wave triangle pattern
It’s much clearer what pattern BTC is painting. After attempts to break upside and downside failed, a triangle pattern is emerging and closing to completion. In the last update, we also used the chart below to measure how far the triangle has gone.
According to the Elliott wave theory, triangle patterns often complete five corrective legs within a triangle-like boundary as the chart above shows. However, more often than not, Cryptos don’t complete the 5th leg or on some occasion have it very shallow before the breakout. Wave (d) was expected at $11,000-$11,100 zone. We are very sure whether wave (d) has completed yet after the recent fast dip. The new chart below shows the two most likely scenarios
If wave (d) has ended already, wave (e) is on the way to $9,600 or higher before the massive bullish breakout. On the other hand, wave (d) might complete three corrective legs like (a, (b) and (c) did, and return upside to $11,100 or higher before the bears beat back below $10,000. This scenario suggests the price will remain in the range longer before an eventual breakout.
Is there a possibility of a bearish breakout?
Of course, a bearish breakout below $9,100 will end up pulling the price to $7,200 to complete a double zigzag pattern that we have considered in many of the previous updates. However, the dip should be limited. In any case, the bullish trend should resume above $19,800 in the long term. The depth of the current correction is what we need the price to clear out.