Since the second week of this month, Bitcoin has gained nearly 12% after hitting $6850 at the beginning of this week. What could the failure to hit $6900 imply after price completed a corrective pattern?
Bitcoin current rally started on 8th September and looks clearly corrective. After gaining about 12% to hit $6850, there are indications from technical analysis perspective, that the bearish move will resume back to the $6000 or even below. The current rally was very much expected as forecast in the past updates. Since price couldn't break below the corrective channel, it was predicted in the last update on 17th September, that price might continue to $6900-7000. The chart below was used in the last update.
The rally from 6100 is corrective. After the long term bearish triangle completed at 7400 and price dropped massively afterwards to 6100, the bearish trend is much likely set to continue. Before that, we might see the current rally to 6700-6900 (50-61.8% Fib-retracement of 7400-6100 dip). The current move from 6100 is emerging into a double zigzag pattern (within a rising channel). A fast break below the channel at any point between the current price and 7000 will most likely continue the bearish journey. There is a strong 5700-5900 support zone which must be taken out as price reach out to the next bearish target at $4000. On the other hand, a fast move above 7400, though less likely, is a possibility. Price can go this way especially if the channel is broken upside above 7000.
Price played out as we expected of a correction. Hit $6850 - slightly below 61.8% Fib-retracement level. Will the bearish move continue or price would rally further?
Bitcoin price prediction: BTCUSD Elliott wave analysis
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.
Do you have other views in contrast to the ones listed or you want to compliment them further? let’s know by your comment below.
Don’t forget to share this analysis with people that matter to you.