Bitcoin rallied close to $8,400 on Monday to continue the swift recovery from $7,850. The following Bitcoin price prediction October 21 update is based on the Elliott wave theory.
October 21, 2019 | AtoZ Markets – The cryptocurrency market has been bullish this week. Bitcoin and its forks – BCH and LTC took the lead. On Friday, the Bitcoin price dropped to $7,850 – its lowest in two weeks. It then recovered to $8,370 on Monday before dropping to $8,200 where it currently trades. The entire market capitalization is a bit unchanged from what we had last week. Buyers clearly feel reluctant to add to their positions.
The entire market is in a bearish run. In spite of losses in the 2nd half of 2019, Bitcoin is 165% up since the 2018 bearish bottom at $3,100. Year-to-date, the premier cryptocurrency still holds around 100% gain. Not a bad investment so far. However, investors would have wanted more given the manner of the 2019 rally between April and late June. The question on the mouth of everyone now is: where is the next bottom?
Will Bitcoin drop to/below $7,500?
Bitcoin price hit $7,750 just at the start of October. That was its lowest price since it started the current bearish run from $13,900. The question now is whether it will go lower. With the way the price is struggling to break down into the lower $7,000s region, $7,700-7,800 might offer strong support for the bulls to build on. However, there is much more struggle to push upside. This bull-bear struggle is now emerging into a sideway/shallow corrective pattern between $8,800 and $7,750 on the chart with pressure seems to be more on the support zone. Once there is a break below the $7,700-7,800 support zone, there is a high tendency that BTC will falter to $7,000 or below. However, we can’t overrule the possibility of a sudden surge above $8,800 to give the bulls their first chance to test the $9,100-9,300 resistance zone since September 24.
Bitcoin price prediction October 21 update
In the last update, we analyzed that the rally to $8,800 completed a shallow zigzag pattern. The fast dip toward the $7,750 support level suggested to us that Bitcoin will continue downside to complete the double zigzag pattern that started from $13,900. We used the chart below in the last update.
We expected wave i to end at $7,750 or below before a minor recovery – wave ii. However, the new chart below shows wave i ended with a different pattern.
The chart above shows the Bitcoin price prediction October 21 update. Wave i completed a diagonal pattern at $7,850. If Bitcoin price drops below the bottom of wave i ($7,850), we will have to admit that wave ii has ended at $8,370 and wave iii is in motion. The next bearish legs could extend to $6,000 or even $5,500. Any of the prices between these levels will most likely be the bottom of the bearish run from $13,900.