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Sanmi Adeagbo

18 September 2018

Cryptocurrency Technical analysis

Bitcoin slumps to $6200 as the bullish momentum loses strength: $5000 next price target?

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Bitcoin has recently dropped to $6200 after a fast bearish move yesterday. Price is now heading to the $5700-5900 support zone. Will there be a break below?

The Crypto market resumed the bearish move yesterday after a fast drop came across. Ethereum has been the worst hit (among the majors) by the new bearish wave after dropping 9% in the last 24 hours. Bitcoin and Ripple also drop about 3% and 2% respectively. Where will price go from here? This forecast will look only at the Bitcoin probable near-term direction and price levels. In the past couple of weeks, there was a clear bearish technical price pattern identified which when projected, meant price could go as deep as $4000 or even $1000. However, there is a strong support zone which has already been held three times this year. If price breaks below this zone, $4000 is very much likely.

In the last update, we expected the intraday bullish move that preceded the current fall, to continue to $6700-6900 until/unless a bearish break below the corrective channel. The chart below was used.

The current move from 6100 is emerging into a double zigzag pattern (within a rising channel). A fast break below the channel at any point between the current price and 7000 will most likely continue the bearish journey. There is a strong 5700-5900 support zone which must be taken out as price reach out to the next bearish target at $4000. On the other hand, a fast move above 7400, though less likely, is a possibility. Price can go this way especially if the channel is broken upside above 7000. This scenario will likely set price on a real bullish recovery.

Price didn't continue upside. It broke below the channel and set for more move downside. If $6100 is taken out, we would most likely see price decline to $4000 especially if the $5700-5900 support zone is broken downside. The chart below shows the new update.

Bitcoin Price forecast: what next?

With the channel breakout, the bears might have taken over again. The chart above shows a new bearish short-term impulse wave forecast. In an established trend, after a correction, the trend continues. A big move is expected to break below the $5700-5900 support zone. The next price level is $5000 followed by $4000 in the short term. Only a break above $6600 would invalidate this forecast and set price to $6700-$7000 price level. Stay tuned for the next update.

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The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZMarketz.com, nor should they be attributed to AtoZMarkets.

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