This week, the Crypto market resumes the bearish journey. Bitcoin has lost close to 3% in the last 24 hours. Is price heading to $6000?
The Crypto market has resumed bearish. In the last 24 hours, Bitcoin, Ethereum and Ripple have dropped 3%, 10% and 14% respectively. Yesterday, when Bitcoin was trading above $6600, I predicted that a new bearish leg could surface which would likely take prices to a new low. The last forecast was based purely on technical analysis - Elliott wave theory. The rally from 18th September was clearly corrective- easily completed a double zigzag pattern. A trend often continues after a correction especially when the correction completes a clear corrective pattern. The chart below was used in the last update.
Price seems to have completed the expected bullish correction. However, price needs to confirm its commitment to the downside by sufficiently breaking below $6500. If this forecast is validated by price, we would see another round of bearish move to $6100 and even below to $4000. The drop is expected to look impulsive - any sideway or corrective low-momentum move below $6500 might precede a new bullish breakout to $7000 in the nearest term
Since the last update, price has dropped below $6500 and seems ready to take a new bearish leg below $6100. The chart below shows the wave analysis of the drop.
Price broke below $6500 as expected and now close to the double zigzag channel base. A break below the channel will take price to the month's low at $6100. The ideal near-term bearish target is $5700-5900 which is a support zone. Price could make the next bounce at the support zone before digging further. A break below will most likely see price at $4000. This forecast will be valid until price breaks above $6850 which is less likely.
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