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.