Bitcoin selloff resumed with a fast break below the $10,000 handle. The following looks at what could happen next based on the Elliott wave theory.
August 29, 2019 | AtoZ Markets - The cryptocurrency market has resumed the bearish run after losing over $20 billion in the last 24 hours. The current market capitalization now stands at $246 billion. The first half of 2019 was bullish with over $250 billion added to the market value. Since late June, the market has been dropping drastically, losing over $130 billion which is more than half of the gains recorded in the first half. Many Altcoins are going into oblivion while some of the majors are looking shaky as Bitcoin's dominance increased to 69% from around 55% in January.
Bitcoin, at nearly $170 billion has 69% of the market share. It's by far the most healthily looking crypto at the moment. Despite the current bearish run, BTC is still trading above the 50% retracement of the December 2018 to June 2019 bullish trend. However, the expectation is that it will drop below the $9,500 and $9,100 support level on its way to $8,500 or $7,200 which are critical Fib retracement support levels. Looking back, at the beginning of this week, on Sunday Bitcoin rallied swiftly to $10,650. On Monday, price returned downside and hit $9,350 earlier today. The $9,500 has been breached downside thus exposing the premier crypto to deeper sell-off below the $9,100 support level. At the time of writing, Bitcoin was priced at $9,400.
Bitcoin price prediction: Elliott wave analysis
In the last update, we looked at the bigger picture and reckoned that the current correction will most probably continue to $8,500 or $7,200 before the bullish trend could resume. In the previous update, we looked at the short-term wave analysis of the current dip and used the chart below.
From $10,650, we expected an impulse wave leg down to $7,200. Price has dropped below wave i (9,750) as the chart below shows.
Wave (2) is still ongoing. There is no sign of bullish reversal yet and the bearish impulse wave (c) of Y of (2) is just mid-way. Bitcoin might very much drop deeper to $7,200 (61.8% Fib-retracement of the preceding bullish trend).