Bitcoin BTC Elliott wave analysis 12 Jun 2018
Bitcoin broke below the 4-month old triangle pattern to continue the bearish trend that has persisted throughout this year. The following 12-14 June Bitcoin price prediction looks at what could happen next based on Elliott wave theory.
Bitcoin is now trading below $7000 - close to $6500 April low. The bearish trend which has seen the Crypto market lost more than 62% of all the all-time gains. There are still optimism that the market would pick at some point. Technically, this could be true as the falls seen across the major coins are steady and corrective in nature. For Bitcoin, we have a long term bearish forecast of $4000 or deeper unless price paints a different story.
In the most recent updates, we discussed the fall from the all time high is painting a double zigzag. The Wave (X) of this pattern completed a triangle pattern between early February and early June (a period of 4 months). In the last update, we discussed about price breaking out and heading to $4000 to make the lowest low seen since this corrective stage started. The chart below was used in the last update.
wave (e) is very shallow (truncated) but the triangle is still valid. A break below the (b)-(d) support line could lead to price making a new low below $6000. By projection, price could drop to $1000 as explained in the 31 May update. Unless a fast and sudden rally is seeing, we could have this month all bearish for the Cryptos and Bitcoin below $4000 heading to $1000.
After this update, price broke out below wave (d) at $7000 down to $6600. It's currently making a slight correction to $6900. The new update below will focus on how price has behaved from wave (e) and what we should expect next.
The chart above is counting a 5-wave down from the end of wave (e) of the triangle. The current intraday rally which may last up to $7000 is shallow and corrective. The bulls will only return if price breaks above 7355 otherwise, the next level to watch for is $6200 and its neighborhood. There could be a bigger rally after price dips to around $6200. The bearish market has a high chance to persist throughout this month unless we see a strong break above $7355. Stay tuned for the next update.
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