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Bitcoin price prediction: is the bearish correction over?

Sanmi Adeagbo | Jul. 19, 2019
Bitcoin price prediction: is the bearish correction over?

Bitcoin bounced to $10,800 on Thursday thereby making the biggest recovery this week. The following technical insight is based on the Elliott wave theory.

July 19, 2019 | AtoZ Markets - The cryptocurrency market has been bearish since the last week of June. July has so far been predominantly bearish as the market shed about $120 billion. At the beginning of this week, Bitcoin was trading around $11,700. It hit its lowest price this month on Wednesday when it touched $9,100. However, there is a diagonal and Fibonacci support zone at $9,000-$8,500. On Thursday, BTC bounced just above this zone and hit $10,800. Time will tell if this will grow into a complete bullish recovery toward $15,000 and higher. 

Bitcoin technical analysis and important price levels

Crypto bears might argue that this is another minor bounce. However, the current bounce happened at a critical support zone. Currently, Bitcoin exchanges for $10,400 with $182 billion in capitalization contributing 65.8% of the entire crypto market capitalization. If price builds on the current run and advances further, we might see a hit of $12,000 or more during the weekend. Ultimately, a break into $13,000 should be enough confirmation that the premier cryptocurrency will be on course to challenge the all-time high. On the downside, further dip to the support zones at $8,500-9,000 is still possible especially if the current rally does not continue to $12,000-$13,000. A hit of $7,200 second bearish target will be expected if the price dips below $8,500.

Bitcoin price prediction: Elliott wave perspective

From the previous updates, wave (1) of 2019 bullish trend that started in December 2018 completed at $13,900. The dip that followed was expected to be wave (2) and is emerging into a double zigzag pattern formed within a perfect channel line. In the last update, where the chart below was used, we expected the price to bounce at the $9,000-8,500 support zone. The more ideal price level was the $9,000 diagonal support level.

If price bounced at this zone, this would be a perfect double zigzag pattern with wave Y ending at the 100% Fibonacci extension of wave W from wave X. 

As shown in the chart above, price should make a minor impulse wave to $12,000-$13,000 to confirm the end of wave (2). There will be a dip afterwards where new buying opportunities could build up to trigger another fierce rally far above $15,000.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.