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Bitcoin price prediction: will BTC breakout toward $22,500?

Bitcoin price prediction: will BTC breakout toward $22,500?

Bitcoin is currently stuck between $10,800 and $10,400 awaiting for the next trigger. The following technical analysis is based on the Elliott wave theory.

September 5, 2019 | AtoZ Markets – Bitcoin was approaching $11,000 on Thursday before dropping to $10,400. The flagship cryptocurrency will most likely touch $11,000 in the coming hours or days. After a bearish run from late June to the end of August, BTC has started a bullish run in September. It peaked at $10,800 on Wednesday before dropping slightly to $10,550 where it’s currently priced.  Today’s market activities have been quiet and range-bound. Meanwhile, the entire crypto market has added about $30 billion in September so far.

Bitcoin analysis: important price levels

Bitcoin dominance keeps on increasing with some investors now considering it as a safe-haven asset. Despite a wild bearish run in most of the Altcoins, BTC maintains a steady and shallow decline from the 2019 peak of $13,900. Overall, Bitcoin has returned 160% in 2019 and 225% since December 2018 low. With its growing influence, it now makes up 71% of the entire crypto market value.

It remains to be seen whether 2019 bullish trend will continue toward the $19,800 all-time high before the year runs out. Below $19,800, there are resistance levels at $11,000-11,100, $12,300, $13,200 and $13,900. With the current price action, further dip will be expected to be limited above $9,100. If at any time, the bearish correction continues below $9,100, we might see $8,500 and $7,200 providing supports.

Bitcoin analysis: next bullish targets

After the rally to $13,900 in June, BTC completed a big bearish hammer candle pattern. It was expected to be the start of a bearish correction or bearish sideways move. Price seems to have chosen the latter and went sideways spending most of its time between $12,500 and $9,100. A breach of the $13,900 to the upside is expected to see the bullish trend off to $22,500 and $35,000 Fibonacci levels as the chart above shows. What sideways pattern is emerging?

Bitcoin price prediction: Elliott wave analysis

In the last update, we identified the sideways move which has lasted for over 9 weeks, as a triangle pattern. The chart below was used.

Wave (d) is not yet complete. BTC price is expected to hit $11,000-11,100 as the next target. If the price is resisted at the diagonal line, we might see a decline toward $9,600 before the breakout happens as the new chart below shows.

The depth of the wave (e) cannot be ascertained until a breakout away from the wave (b)-(d) line happens. It could be as shallow as $10,500 or as deep as $9,600. Next target will be $22,600. What if a bearish breakout below wave (a)-(c) happens instead, the dip that follows will be expected to be limited at $7,200 before the bullish trend resumes.


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, nor should they be attributed to AtoZMarkets.

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