Bitcoin slumps further on Wednesday below $8,000. The following October 16 Bitcoin price prediction is based on the Elliott wave theory. Is the bearish correction back on track?
October 16, 2019 | AtoZ Markets – Bitcoin bears have resumed dominance this week. Last week, the effort to push above $9,000 was not successful. The premier cryptocurrency slumped below $8,500 and has not recovered since then. Earlier in the week, BTCUSD largely traded between $8,500 and $8,200. The bears have finally taken over and currently leading BTC to its lowest price in a week. If it breaches below the $7,750 low, we will most likely see it drop to $7,000 or below before the much-anticipated bullish trend resumption.
Cryptocurrency market overview
The cryptocurrency market has shed over $10 billion since the week started. The current crypto market capitalization stands at $216.9 billion according to data available on Coinmarketcap. Meanwhile, the aggregate of the Altcoins is performing slightly better than Bitcoin. Bitcoin dominance has dropped from 66.8% to 66.5% as the bearish correction continues across the board. Notably, USDT has dethroned BCH as the 4th largest crypto base on market capitalization. LTC which was 4th as some time in the first half of the year has now slumped to 6th. BNB, EOS and BSV and XLM completed the top 10 list in that order. ETH and XRP remain unchallenged in the top 3 while BTC sits on top like it will there forever.
BTC Analysis: general expectation and important price levels
When the current bearish run started, market enthusiasts all speculated a correction would come up at some point. How deep it would go was, however, wildly debated. Meanwhile, as the bearish correction proceeds, the patterns emerging give the chance to predict what the next bottom will be. Although many things were debated about the BTC price actions but there was a consensus on some points. Firstly, the next bottom should be significantly above the 2018 $3,100 low. Secondly, the correction could take as much or more time it took the rally from $3,100 to $13,900 2019 high. Thirdly, when this bearish correction is over, the next surge should push above the $19,800 all-time high. The next price support level is at $7,750. There are support zones at $7,200-$7,400 and $5,400-$5,500. Once the price breaks below $7,750, it will most likely hit these zones before the bullish trend resumes.
Bitcoin price prediction October 16: Elliott wave analysis
In the last update, we reckoned that a double zigzag corrective pattern was emerging from $13,900. We used the chart below.
Wave (b) though shallow has probably ended at $8,800. After the current dip (wave i of (c)), we will expect a minor correction above $8,000 (wave ii of (c)). The new chart below shows the current BTC analysis is completing wave i which might go bigger than earlier expected.
The chart above shows the October 16 Bitcoin price prediction. If the price goes as the chart above indicates, BTC will complete wave (c) – an impulse wave, to complete the bearish correction from $13,900. By projection, it could hit the $5,400-5,500 support zone. However, we will watch how the price reacts at the $7,200-7,400 support zone.