Bitcoin rallied close to $13,000 on Tuesday to continue the July recoveries. Will it be sustained? The following share insights based on Elliott wave theory.
July 09, 2019 | AtoZ Markets - BTC is once again performing better than the altcoins after the July recoveries seen across the board. The flagship cryptocurrency though dropped below $10,000 in late June but has outperformed most altcoins in July. In July so far, BTC has gained over 30% after it hit $12,900 on Tuesday. However, it's not certain that the bearish correction from $13,900 is yet over. A massive dip below $9,700 could happen to complete a deeper and more complex correction before the bullish trend resumes.
BTCUSD price has been bullish this week. It gained almost 4% on Sunday and over 8% on Monday. Today, however, after gaining almost $600 to hit $12,900 price, BTC dropped fast to $12,000 before correcting to $12,300 where it currently trades. From the technical perspective, $12,300-$13,200 is a strong resistance zone which could reject the current bullish push. A break above this zone will almost probably lead to the $13,900 high or even a fresh 2019 high. If the resistance zone holds, further dips to $9,000 or even $8,000 is very much possible as discussed in the last update.
Meanwhile, the market has gained about $4 billion in the last 24 hours (at the time of writing this report) with capitalization standing at $344 billion. Bitcoin's dominance has also increased by 0.7% in the last 24 hours according to data available on Coinmarketcap.
Bitcoin price prediction: Elliott wave perspective
From the perspective of the Elliott wave theory, the dip from $13,900 looks shallow at $9,700. Therefore further dip is expected as the chart below used for the last update shows.
Wave X was expected to continue to the $12,300 - $13,220 zone. Price has done exactly that. Wave X is at the brink of completion as the new chart below shows.
A break below the Wave X channel will all but confirm the start of wave Y. If the price moves as expected, it will drop to $9,000 at least before wave (3) burst upside to make a new all-time high.