Bitcoin price has dropped below $10,500 and off to meet the $10,000 round figure. The following looks at what could happen next based on the Elliott wave theory.
August 14, 2019 | AtoZ Markets - Bitcoin has broken fast below the sideway range that started at the beginning of this week. In fact, since it hit $12,300, BTC has broken below two congestion zones. The current price slump started on Tuesday and has now lost $1,000 in about 12 hours. Prior to the current dip, there were two main support levels at $11,100 and $9,100. One is taken out. Will the price fall further to the $9,100 low?
Will the emergence of national cryptocurrencies weigh on Bitcoin
Currently, the traditional global financial market is getting investors worried. The rate cut gluts cut headlines in July and August as the Central banks shielded themselves from a possibly impending meltdown. The political developments since 2018 continue to leave less to be desired. The Brexit is not making any progress while the US and China continue to fire economic missiles at each other. With the current outlook, the Central banks might look forward to Cryptocurrencies.
The creation of 'national cryptocurrencies' and their adoption as non-cash currencies will not leave the world monetary system unchanged. It has been reported that China will pioneer this as it launches its first national cryptocurrency. This development does not bode well for the community as its essence will be tampered with - decentralization and anonymity. If it becomes a world-wide practice, it will be interesting to know how the banks deal with these important features. On the other hand, this could enable Bitcoin to compete with Gold as the top safe-haven asset thus leading it to break to new all-time highs.
Meanwhile, the crypto market has dropped over $35 billion this week. BTC has a 67.5% share of the entire market. The market is looking bearish again. Will there be a lift?
Bitcoin price prediction: Elliott wave analysis
In the last update, we expected a dip to the $10,700-$10,300 Fibonacci support zone. The chart below was used.
Price has dipped to the low of the zone and now consolidating around $10,500. This scenario is still valid if the price lifts above the wave ii channel as the new chart below shows.
Alternatively, a deeper wave (2) could happen below the $9,100 low. if the current dip continues below $10,000, there is a high tendency that price will dig further to the $7,200 critical level. The alternate wave count is shown in circled green.