Bitcoin rallied this week to break above $11000 and made a new all time high close to $11400. Will the bullish pressure reduce a bit, make a bearish correction before the next rally?. The following analysis is based on 30 November Bitcoin Elliott wave analysis.
30 November, AtoZForex - Bitcoin price was below $9000 before the close of last week. In just 24 hours, it rallied above $9000 and just yesterday, made a new all time high shy of $11400. This was hugely expected as the trade volume continued to be on the rise. The bullish momentum does not look tired for now based on Elliott wave theory. It is indeed very important to understand how strong the bullish trend is and how long it could last.
In the last 4-6 weeks, we have been able to follow the price advance from just above $5000. In November alone, price has increased more than 100% from $5655 low which we also spotted correctly. The Elliott wave theory seems to be a very useful tool for Bitcoin technical analysis.
In the last update, at the beginning of the week, we used the chart below.
Bitcoin Elliott wave analysis, H2 (click to zoom)
Price moved even bigger than expected. Now heading to $10000. The 5th sub-wave of the 3rd minor wave is extended. I expect price to $10000-$11000 before the next dip. If the dip happens as expected, price could close lower this week than it opened.
The rally continued as expected. We also mentioned that price was about to complete the 3rd minor wave. At the end of the 3rd minor wave, a corrective minor wave 4 should be seen to around 38.2% Fib-retracement of the minor wave 3 which will be determined by where wave 3 ends. Has wave 3 ended at $11400 and wave 4 on the move?. The chart below shows what we have now.
30 November Bitcoin Elliott wave analysis- BTCUSD forecast
Bitcoin Elliott wave analysis, H2 (click to zoom)
The fall from $11400 top was fast thereby signifying a corrective dip. Yesterday after peaking, price dropped 18% to $9275. It seems this will continue for the rest of the week. Price is expected at around $8000 before the next rally. Bitcoin is in the minor wave 4. Unless a sudden break above the new high happens, the dip should continue before the rally that could make a new high. Stay tuned for the next update.
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