Bitcoin makes a decent rally and almost it $11,000. Will BTC push further upside?
August 20, 2019 | AtoZ Markets - The price of bitcoin has been increasing since the last days of the last week. After a fast dip to $9,500, the bulls fought to hold above the $9,100 low. If the price should break below that level, more buyers will drop their position and aim to buy at a lower price. Technically, the next bearish target would be the $7,200-7,500 zone.
Bitcoin gains $1,000 after Bakkt announcement
The Bakkt announced that it had gotten all the requirements to launch its Bitcoin futures in late September. The crypto market was upbeat afterwards and had a decent recovery following the sharp drops seen across the board. Bitcoin price almost hit $11,000 on Tuesday. Currently BTC exchanges for $10,700 but still has room to advance to $11,500 before deciding whether to break upside or resume the bearish correction.
Bitcoin market dominance increases
Since the turn of the year, Bitcoin has come out far stronger than the Alts. This is evident in its % market dominance which has increased from over 55% at the beginning of 2019 to the current 69%. While Ethereum has been decent in terms of 2019 net gains, Ripple has dropped drastically to its lowest price since late 2017. Bitcoin Cash and Litecoin, which are hard forks of Bitcoin, have kept a good pace while Cardano, EOS and Stellar which started the year well have slipped significantly. If this trend continues, Bitcoin dominance at the end of 2019 will have been around 80%.
Bitcoin analysis: important price levels
After the price bounced off $9,500, it has now become a significant support level above the $9,100 and $7,500 resistance levels. If price slips further, these are the levels to watch out for. The current dip is expected to be limited above the $7,200-7,500 zone. To the upside, there is the $11,500 diagonal resistance and the $12,300 critical level. A breach above these price levels is expected to lead to the $13,100 and $13,900 highs.
Bitcoin price prediction: Elliott wave analysis
From the last update, we had two scenarios. Either of these will most likely play out. The chart below shows the new update.
Price has changed a bit from what was seen in the last update. The rally from $9,500 looks corrective and currently not looking like one that could cause a breakaway. However, anything could still happen. The two scenarios are still intact but the second scenario seems more likely. Meanwhile, the current wave (b) (in green) rally could continue to test $11,500 before the next dip to $7,500.