Bitcoin dropped below $10,000 on Tuesday. The following technical analysis is based on the Elliott wave theory.
The cryptocurrency market has continued the second week of September bearish after losing $8 billion in the last few days. Bitcoin maintains 69% of the market dominance with $180.41 billion out of the market's total of $259.25 billion. In addition, the flagship cryptocurrency has shed over 2% (at the time of writing) in the last 24 hours and is currently priced at $10,025.
For over seven weeks, Bitcoin remains within the $9,000-$12,000 range. However, the range is getting smaller and it's just a matter of when the big breakout will happen. In addition, the direction of the breakout is a major concern as the bulls see a bullish trend preceding a sideways range while the bears see a smaller range following the $13,950-to-$9,100 price slump that happened between late June and mid-July.
The bears have almost recovered almost all of the September earlier bullish advantage. The bulls pushed to $10,950 to lead a 13.5% gain from $9,600. Four days after, BTC has slumped to $9,950. However, if the price will continue the range-bound move, we will expect the current dip to be limited above $9,500. BTC might continue in this range for one more week or throughout September before breaking out.
Bitcoin analysis: important price levels
Bitcoin keeps making lower resistance levels. However, the support levels are very close thereby looking more likely to face more pressure. The major support zone remains at $9,100-$9,350. A break below this zone will lead to further fall toward the $7,000-7,200 bearish target. On the other hand, the nearest resistance levels are at $12,300, $13,200 and $13,900. It will require a far stronger bullish force to break these levels.
Bitcoin price prediction: Elliott wave analysis
In the last update, we had the two most likely scenarios from Elliott wave perspective. The first scenario considers the entire dip from 13,950 as a triangle pattern. A bullish breakout should happen afterwards above the all-time high. This will require a lot more from the bulls than the second scenario requires from the bears. The second scenario expects a deeper bearish correction toward $7,200 before the larger bullish trend resumes. If the latter plays out, then Bitcoin bulls will have to hold on for more weeks or even a few months. The chart below focuses on the second scenario.
The current sideways price moves could continue for one or two more weeks before a breakout. Technically, a bearish breakout looks more likely and this scenario should play out unless a break above $12,300 resistance level happens instead. On a short-term, the current dip should be supported above $9,500 and the price should rally back above $10,950 in the coming days.