Bitcoin sell-off has continued below $8,500 after last week recovery to $8,800. The following technical insight is based on the Elliott wave theory.
June 03, 2019 | AtoZ Markets - This week has started bearish for Bitcoin as it quickly dipped below 8,400 on Monday. Price hit 8,800 during the weekends and was short of hitting the 9,100 high recorded so far in 2019. After a bullish May, it was expected that June will start bearish before price picks up to a new high. With the recent bearish breakout, it seems Bitcoin will break below the 8,000 low formed last week.
Bitcoin market dominance stands at roughly 56% with $151 billion in market capitalization according to data provided on Coinmarketcap. The premier cryptocurrency is about $7 billion short of its highest market cap in May and has some way to go before it recovers from the 2018 bearish trend.
Bitcoin price prediction: Elliott wave perspective
From the perspective of the Elliott wave theory, BTC's advancement from 3,100 low looks healthy from all indications. An impulse wave pattern is gradually developing. Same wave pattern can be seen in other cryptocurrencies like Litecoin, Bitcoin cash and even Ethereum. From the last update, we believed that the 3rd wave of this impulse wave rally has probably ended at 9,100 - 2019 highest price so far. The 4th wave dip was expected to 7,000 or slightly below. The chart below was used.
The 4th wave correction often ends at the 38.2% retracement of the third wave. In this case, the 4th wave could drop to 6,900 and into the territory of the 4th sub-wave of wave 3 - wave (iv) of 3. At the end of the 4th wave, a new surge is expected to lift BTC toward the 10,000-12,000 target zone.
Bitcoin Sell-off continues? Wave 4 in motion
Since the last update, Bitcoin rallied gradually from Thursday till Sunday and hit 8,800 in the process. The chart below shows that wave (a) of 4 just below 8,000 before completing wave (b) at 8,800. Price fell quickly to 8,300 to start wave (c) before the current slight bounce to 8,500.
The first bearish level to watch, for the end of wave 4 is the mid-7,000s where a simple zigzag pattern could complete. However, that would be a very shallow wave 4 correction. The 4th wave dip could extend further to 7,000 or below to complete a more complex zigzag pattern. The dip is expected to continue unless a fast break above 9,100 high happens.