Bitcoin rally retreated to 5400 on Wednesday in another dip across the board. How deep could the dip go?
April 24, 2019. AtoZ markets - The crypto market retreated a bit on Wednesday with losses ranging from 2% to 13% among the top 20 cryptos based on market capitalization. Market capitalization also dropped over $5 billion according to data available on Coinmarketcap. Bitcoin was among the least affected as it dropped only 2% at the time of writing.
The flagship cryptocurrency has had a good year so far after gaining nearly 80% since the December low. Looking back, between January and March, BTCUSD price was unable to break above the December 4230 high. Thus, there were talks of price making a new low as the rally from 3100 looked corrective. However, the story changed when prices skyrocketed in April to break far above 4230 in a 37% upsurge to 5600 (highest price in over 5 months).
Bitcoin Elliott wave analysis and important price levels
The rally from 3100 now looks like a serious trend. The pattern is emerging into an impulse wave which is expected to extend into the 6000-7000 territory. From a technical perspective, the current dip might continue as the sub-wave 4 of the 3rd wave of the bullish impulse wave pattern. The last update, where the chart below was used, pointed to this likelihood.
The 3rd wave is still emerging. The channel connecting sub-wave 1 and 2 could provide support if the current dip continues toward 5000. The next rally should see price testing the 5900-6000 resistance zone. Let's remind ourselves that price failed to break this level after many attempts spanning across a period of 9 months. The price might be resisted if the 3rd wave ended at 6000 as expected. The chart below shows the new update.
4800-5000 is looking like an important support zone that price might get attracted to. Wave 1-2 channel retest, sub-wave 1-2 (circled) channel retest and the 38.2% Fib-retracement of the 3rd sub-wave all lay at the same zone - $4800-5000. The current pullback might just continue, to complete the 4th sub-wave of wave 3 at this zone before the next rally to 6000 completes the 3rd wave. Unless a high volatile fast dip happens below 4500, the bullish run should continue into the 6000-7000 territory.
What's your next bullish target for Bitcoin? Please share with us in the comment box below.