Bitcoin is shedding some of the 2019 gains. The following share technical insights based on Elliott wave theory.
July 02, 2019 | AtoZ Markets - After losing over $4,000 in less than a week, it's safe to say the much expected bearish correction has started. Bitcoin has had an extended bullish run from $3,100 in December 2018 to $13,900 in June 2019 to complete the 61.8% retracement of the 2018 bearish run.
The bullish trend has had some dips along the way. At the start of the bullish trend from $3,100, the price had the first set-back in January 2019 with a big 21% dip. After recovering in February, the price dipped 12% as the end of the same month. Price recovered the February dip in March and moved toward a fresh year high. April changed the game as the price surged and maintained the rally throughout May and a new 2019 high was achieved at $9,100. However, on May 17, there was a flash 25% crash and BTC dropped $2,100 in 1-2 hours. Price recovered quickly until a bearish June came in and caused an 18% dip to $7,400. An 85% massive surge followed afterwards to a new 2019 high at $13,900. Since the last week of June however, the price has dropped about 30% which is the biggest dip so far in 2019. This could easily be the real bearish correction of the bullish trend from $3,100.
Bitcoin price prediction: Elliott wave perspective
The dip has continued and BTC currently trades at $9,850 - heading to the $9,100 previous high. Price is expected to drop into the $9,100-$7,400 late May/early June territory. There could be a minor bounce at $9,100 before the dip continues. The new chart below shows little changes to the last update.
Wave (2) is ongoing and should continue to 8,500-7,000 zone unless a massive bullish spike happens. At the end of wave (2), the bulls will be prepared to drive the premier cryptocurrency to a new all-time high as the wave (3) re-establish the bullish trend.