Bitcoin recovers sharply above $8,200 during the weekends. What should be expected next? The following insight is based on the Elliott wave theory.
May 20, 2019 | AtoZ Markets – After a 55% rally in May, BTC price hit $8,400 last week. However, ahead of the weekend, the price dropped sharply and lost more than half of the gains in May prior to the flash crash. It didn’t take much time to recover most of this as the market was upbeat during the weekend. Bitcoin revisited $8,300 but didn’t stay there for a long time before dropping below $8,000. Currently, Bitcoin exchanges for $7,700. It’s very much likely that price will stay a bit longer below $8,000 mark before the next upsurge to $10,000.
The move seen in Bitcoin is almost similar to what is being displayed by the top altcoins. While Bitcoin has now topped at $8,400, Ripple, Ethereum, Litecoin, Bitcoin Cash have also made their own respective tops- 2019 highs. Efforts to break above these levels during the weekend proved to be short of causing a break upside. It remains to be seen how quick the breakaways will happen. However, there is a likelihood of another legs downside to retest the May 17 lows, seen across the board, or even a much longer sideways consolidations. Over the weekend, Bitcoin price dominance has increased by nearly 1% as its market capitalization added $14 billion to hit $142 billion. Meanwhile, BTC market cap is currently below $140 as the week starts proper.
Bitcoin price prediction: Elliott wave perspective
Using the Elliott wave theory, BTC is advancing in 5-waves from 3100 low recorded in December 2018. The price pattern of the digital currency showed last week that the 3rd wave was ending at $8,400 and a dip to $6,400 was expected to complete wave 4 before the 5th wave gets on its way to $10,000 mark. The fast crash marked the start of the 4th wave as the chart below, used in the last update, shows.
The 4th wave was expected to complete a corrective pattern – a zigzag, triangle or a more complex pattern. However, with the quick surge back to $8,300, it seems a simple zigzag is more probable at this stage.
Price is still moving within the context of our original forecast – a 4th wave dip. The 4th wave, however, is completing a simple zigzag pattern. The 3rd leg of wave 4 could see a gradual dip to 6400 or slightly below. If the 4th wave does not morph into a triangle pattern, the bullish break to $10,000 is not far away.