Bitcoin is making a resurgence after slumping below a critical support zone earlier in the week. The following Bitcoin price prediction October 25 update is based on the Elliott wave theory.
October 25, 2019 | AtoZ Markets – Bitcoin hit its lowest price since May. The bearish run from late June 2019 is lasting more than what an average Bitcoin bull would have expected. The market will always do its thing. Meanwhile, investors and traders have a responsibility to weigh in their positions and determine how much risk they are willing to take. In the case of Bitcoin, Hodlers will have to be very patient. It’s true that the cryptocurrency has a big potential. It is expected to break above the $19,800 all-time high and hit $25,000, $50,000 etc. However, the road will not be smooth as we have been seeing.
After an amazing 2019 H1 run, the bears are now dominating again. Despite the big fall in the second half, Bitcoin has returned over 80% YTD in 2019. Having said that, the bearish run is in the final stages. Once this leg is over, Bitcoin price should end the year in a positive mood. However, more digging toward $5,500-6,000 is a big possibility.
Cryptocurrency market capitalization is back above $200 billion according to Coinmarketcap. Bitcoin still maintains 65% market dominance. After it shattered the $7,750-7,850 support zone earlier in the week, BTC hit $7,350 on Wednesday. However, the market has been recovering in the last 24 hours. Bitcoin now exchanges for $7,650 after it almost hit $7,700. The current recovery will most likely reach the $7,750-$7,850 support-turned-resistance zone before returning downside. Above the resistance zone, we have the $8,800 resistance level before the $9,100-9,300 resistance zone.
Bitcoin price prediction October 25 Elliott wave analysis
In the last update, after the minor rally lost its way at $8,370, we expected a break below $7,850 to cause further decline into the $7,407-7,500 reversal zone. We used the chart below.
The sell-off was huge and thus blew off the support zone below $8,000. Wave 1 (circled) of iii hit $7,350 before the minor recovery. The new chart below shows the Bitcoin price prediction October 25 update.
Has wave iii ended at $7,350 or the dip was wave 1 (circled) of wave iii? If the current recovery is limited at $7,850-8,800, the former will be preferred. This means that a break below the purple channel will set wave 3 (circled) of iii in motion to $6,500. Eventually, if the bearish move from $8,800 completes a proper impulse wave, BTC price should hit the $5,500-6,000 territory. On the other hand, if the current recovery breaks above the wave i-ii connecting upper trendline, the impulse wave will become invalid. We can then expect a higher surge toward $10,000 which could lead to the continuation of the bullish trend of the first half of the year.