Bitcoin BTC Cryptocurrency Elliott wave anaysis 4 Jun 2018
Bitcoin has been trading below $8000 for nearly two weeks amidst short term bullish speculations. The following 4-5 June Bitcoin price prediction uses Elliott wave theory to forecast BTCUSD prices for the coming days/weeks.
Bitcoin remains below $8000. Today has been bearish so far after price faltered from $7800. The larger degree wave pattern shows a big triangle about to complete. Triangles, according to Elliott wave theory, have five sub-waves. Price has already completed the 4th leg down to $7000 last week. If price would complete this pattern, a rally close to $9000 will happen. Triangles are known to be followed by high momentum breakout, often times in the direction of the immediate prevailing trend. More explanation was made on this in the last update where the chart below was used.
The chart above shows the formation of a triangle pattern since price rallied from the last low at $5900 in February. Once a triangle is complete, we often see breakouts followed by huge momentum. On more occasions, we have seen price continued in the direction of the immediate prevailing trend (bearish in this case) and on much fewer occasions, we have seen the opposite happening. What we know is that, there is another huge move coming, which if $5900 is taken out, a drop to $1000 is next. Before the drop, we could see a rally to $9200. On the other hand, a strong break above $9200 could see price toward $12000 or above though this is less likely. But we have seen this market bring up a few surprises.
Will the rally continue to $9000 as expected? The chart below shows the new update.
A leading diagonal just completed at $7800 before price returns downside. The current bearish move could continue to $7300 but price should rally from there to $8500-$8800 to complete the last leg of the larger degree triangle pattern. This is very likely to happen unless a fast drop below $7000 is seen, to make price head toward the $5900 low and probably break below it eventually. To join the bullish move afresh, it's important to wait for price to lead the way and turn upside significantly. Stay tuned for the next update.
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