Bitcoin dropped swiftly on Friday but has gone a bit quiet going into the weekend. The following Bitcoin price prediction is based on the Elliott wave theory.
October 12, 2019 | AtoZ Markets – The Crypto market is closing this week bullish despite Friday slumps. Last week, BTC rallied fast from $7,800 and hit $8,800 on Friday which was its highest price since late September. However, it slumped to $8,300 afterwards and continued to $8,250 on Saturday. Bitcoin is currently priced at $8,340 at the time writing. The entire market shed about $4 billion in less than 24 hours. Bitcoin dominance remains at 66.8% of the market’s total capitalization.
Looking closely at the Bitcoin price behaviour as the weekend continues, it seems it will slump further. Toward the end of this quarter, we might see big resurgence as most of the fundamental metrics are overwhelmingly bullish, However, the market is still within the bearish zone and might need to shake off the bears for another round of sharp spikes expected to be bigger than what we had in 2019 H1.
currently, Bitcoin rally from $7,800 to $8,800 looks corrective. If the larger bearish correction resumes, we should see BTC break down to $7,000 or deeper to $5,500. Unless a massive breakout above $10,000 happens, the bottom of the current bearish run is not yet hit.
Bitcoin analysis: important price levels
Resistance Levels: $8,800, $9,100 and $10,500. If the current rally continues above $8,800, we should see BTC price hit the $9,100-9,300 resistance zone. Otherwise, the support levels are more attractive at the moment.
Support Levels: $7,800, $7,000 and $5,500-6,000. The intermediate bias is bearish. If the Friday slump continues, the price will eventually break below $7,800 down to $7,000 and $6,000 before the 2019 bullish trend resumes.
Bitcoin price prediction: Elliott wave analysis
In an established bearish trend or correction, the best approach is to short the bounces. In the last update, we identified another bounce would hit around $8,600. We used the chart below.
The price moved exactly as expected to complete wave (a). However, wave (a) is very shallow (38.2% Fibonacci retracement) as the new chart below shows.
A simple zigzag ending at 38.2% Fibonacci retracement level is very shallow. A more complex correction toward $9,100-9,300 is a possibility. However, the bullish momentum looks to be running out and the bears might push further downside toward $5,500-6,600.