Bitcoin is back above $10,000 and might continue to $10,500 before dropping further. The following technical analysis is based on the Elliott wave theory.
August 23, 2019 | AtoZ Markets – Bitcoin is bouncing off $9,750 and now currently priced above $10,000. It hit $10,250 earlier today. Currently, at the time of writing, BTC is priced at $10,150. Since Monday, the premier crypto has been bearish. It fell from $10,950 to $9,750 in 48 hours. Meanwhile, a minor recovery started yesterday and BTC has since gained over $400. Though the larger picture shows a propensity for more sell-offs, the minor rally could continue to $10,500.
Bitcoin still maintains a huge market dominance which has dropped from 69% to 68.4%. However, its dominance might soon start to plummet as the Alts gain more advantage according to our last report. The total market cap remains at $264 billion – unchanged from yesterday’s total. The market has been set back by over $50 billion in the last two weeks.
Bitcoin analysis: important price levels
The current bearish correction started late June after BTC rallied to $13,900. Above this resistance level is the $19,800 all-time high. Meanwhile, these levels are currently far-fetched. The closer resistance levels are $10,900, $12,300 and $13,100. However, before the price will test these levels, it might drop further below the $9,500 and $9,100 support levels before it hit the $7,500-7,100 support zone.
Bitcoin price prediction: Elliott wave analysis
From the Elliott wave perspective, it’s very clear that the dip from $13,900 is a correction of the 2019 bullish trend that started in December 2018. We labelled it as wave (2) and reckoned that a double zigzag pattern is emerging. In the last update, where the chart below was used, we expected the wave (2) double zigzag correction to continue to $7,500-7,200 diagonal and Fibonacci confluence zone.
Wave (c) will be in full flow once $9,500 is breached downside. Looking at the 15 minutes time frame in the new chart below, it seems the current correction will most likely continue to $10,500 before $9,500 is breached.
We are counting a bearish impulse wave from $10,950 as the last leg of the zigzag that will complete the double zigzag wave (2). Unless a massive bullish breakout happens above $10,950, the sell-off should continue below $9,000 to $7,500.