Bitcoin struggles to mount a serious surge away from the current bearish zone. Is there more room for the bears?
June 13, 2019 | AtoZ Markets - The Bitcoin 2019 recoveries are stalling. The top-rated cryptocurrency now finds it difficult to break away toward the 9,100 high achieved in May. The current bearish correction was very much expected and from technical indications, could dip further. The bull lack enough momentum to do better after pushing from 7,400 to 8,250. After the dip to 7,400 last week, it was expected that a big surge above the 8,000 handle to end the bearish would happen. The surge that followed though hit above 8,000 but the bears pushed back. Bitcoin has gained about $10 billion in the last one week but still over $10 billion away to level with its late May valuation.
Bitcoin Analysis: Price important levels
To the upside, the next important level is the 9,100 high. A break above will ensure a fresh 2019 high and a definite hit of the 10,000 mark. To the downside, 7,400 and 7,000 are the nearest support levels. If the current bearish correction continues, price is expected to be supported at the 6,500-7,000 zone. Below the zone is the 6,200 support level where price pushed away from the May 17 bearish fast crash.
Bitcoin price prediction: Elliott wave perspective
The current dip is expected to be the 4th wave of the bullish impulse wave from 3,100. The dip is currently shallow - less than the 38.2% Fibonacci retracement of the 3rd wave expected at 6800-6900. The 4th wave is now emerging into a complex zigzag pattern - a double zigzag. As explained in the last update with the chart below, wave (w) ended at 7,400.
Wave (x) was expected to have ended at 8,000. Wave (y) was expected to follow to 7,000 or below. However, wave (x) went more complex but the price is still contained in the corrective channel (in red) as the chart below shows.
BTC price chart shows the cryptocurrency is still under bearish pressure and the 4th wave could complete a double zigzag pattern at 7,000 or below. At the end of the 4th wave, a new wave of rallies should follow up to 10,000-12,000.