Bitcoin price spikes to $8,400 but remains corrective

Bitcoin price spikes to $8,400 on Monday to start a bright week. However, the bearish correction still hooks below $8,800 and thus remains open to a deeper fall.

October 14, 2019 | AtoZ Markets – In the larger part of last week, Bitcoin was bullish. It rallied from $7,750 to $8,800 before it slumped to $8,250 at the later end of the week. However, the premier cryptocurrency has started this week with good volatility although it remains range-bound between $8,400 and $8,150. There are two clear possibilities now – a recovery above $8,800 or a slump below $7,750 low. Meanwhile, if we look at the Bitcoin price chart closely, we would see that even if the current recovery continues to the $9,100-9,300 resistance zone, BTC still remains in the bearish territory. Not until a massive break above $10,000 happens, the expected recovery toward the $19,800 all-time high may not be seen soon. Meanwhile, the hash rate and other fundamental indicators continue to hit new highs. These so indicate that the much-anticipated recoveries will happen.

Bitcoin dominance drops again

Bitcoin has performed worse than the Altcoins aggregate in October so far. Its dominance has dropped to 66.4% from around 70% recorded in August. In the last 24 hours, Bitcoin price has shed nearly 1% (at the time of writing this report) while ETH, XRP and BCH have gained 1.3%, 3.8% and 0.85%  in the same time frame. This is according to the data available on Coinmarketcap. The entire market capitalization is now $226.9 billion – almost the same as what we had at the beginning of the week.

Bitcoin price analysis: Elliott wave medium-term outlook

October 14 Bitcoin price analysis Bitcoin H4 Chart (TradingView)

From the chart above, Bitcoin price is in a corrective phase after December 2019-to-January 2019 rally which took BTC out of the 2018 bearish run. It gained nearly $10,800 to hit $13,900 in late June. Since late June, another bearish correction has rocked the market. In the last update, and as the chart above shows, we are looking at a double zigzag corrective pattern with possible bottoms at $7,200-$7,400 zone or $5,400-5,500 zone. The price has not hit any of these zones neither has it responded with a bullish breakout. The current intraday high is at $8,800 – below the $9,100-9,300 resistance zone. If the price stays longer below $8,800, the short-term outlook below will most likely happen.

Bitcoin price analysis: Elliott wave short-term outlook

October 14 Bitcoin price analysis Bitcoin H4 Chart (TradingView)

A bearish impulse wave leg is highly likely below $7,750 low to complete wave (c) of Y of the double zigzag correction from $13,900. Between the two support zones, the $5,400-5,500 support zone is more likely. How fast this will happen is difficult to predict. In conclusion, unless a big breakout happens toward $10,000,  BTC buyers might have to have to wait a bit more.

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