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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