Bitcoin rose above $8,000 on Tuesday. However, it seems a corrective dip is about to commence at the 8,000-8,500 price zone.
May 14, 2019 | AtoZ Markets - Since the April bullish breakout, the market has experienced a huge optimism that has continued to drive prices higher. Since the Bitcoin price broke above the year's previous high of 4300 on 2nd April, it has gained over 80% to hit $8,300. It has broken two levels of resistance and now close to the 3rd at $8,500. Breaking these levels is one thing but the ease is just another and this suggest the price has bottomed at 3100. Bitcoin is back to the sort of rallies that were seen in the 2017 bullish days when it hit $19,800 all-time high. At the current price level, it's quite unlikely to see BTC price below 4300 let alone 3100.
Bitcoin price prediction: Elliott wave perspective
In our long term update after the November breakout that led to a new low at 3100, we discussed how the bearish trend was in the last stage. Subsequent updates after the 3100 low discussed the need for price to rally smoothly in a 5-wave bullish trend above the 6000-7000 zone before starting to discuss the possibility of the next bullish phase with potentials of a new all-time high. All these are playing out now and BTC price has proved so far that the near-term future is bullish. An impulse wave rally is playing out far above $7,000. In the last two updates, we expected rallies to $8,500 and the price is very close albeit more quickly than expected. The chart below was used in the last update.
BTC price is still in the 3rd wave which is now very extended. It has entered into the $7,500-8,500 zone where we will now look forward to a wave 4 dip before further rallies toward $10,000. There are going to be two dips after the wave 2 dip - wave 4 dip and the 3-wave larger bearish correction after the 5th wave. These are important price levels where HODLers who would like to add to their positions could consider entries.
Wave (1) could end at $10,000 before a major dip to $5000-6000 zone. This means that the current rally could continue till the end of June. The majority of the 2nd half, however, will most likely see bearish corrections. In 2020, the recovery is expected to continue with wave (3) leading a rally toward $19,800 high and even breaking above it to reach a new all-time high.