Bitcoin continued its recovery this week but is still way short of other major Ether and Ripple. What's the tendency that price will recover soon? The following 3 January Bitcoin price prediction gives clues from technical analysis perspective.
03 January, AtoZForex - This week so far, price has made close to 30% recovery from the last low. Bitcoin now trades above $15000. Ethereum and Ripple have already completed their recovery. Ripple even made a new all-time high - a rally that clicked above $2 thereby making it the best performer last year and the best so far this year. Ethereum, though not performed as impressive as the Ripple, has also completed its recovery and made a new all time high. Why not Bitcoin yet?
In the previous updates, we looked at BTC from technical analysis perspective and discovered more than two price patterns that suggest more dip to $8000-$9000. In the last update where we used the chart below, it was clear the bearish correction could still continue.
Bitcoin Elliott wave analysis, H2 (click to zoom)
The corrective wave 4 is exhibiting the properties of a zigzag pattern – 5-3-5 (wave a-b-c). Wave b could have completed at $16500 and wave c dropping further to $8000. Subsumed in wave a-b is a bearish flag which is a continuation pattern of the immediate trend. The immediate trend now is bearish while the over-all trend is bullish. A break below the inner channel could be the confirmation the bears need to drive the point. Unless a sudden break above $16500 happens, I strongly believe the immediate direction is still bearish.
The breakout happened to the downside but was unable to drop lower than $11200 as was expected. Since the breakout, price has rallied to the territory of the (b)-wave morphing into a different pattern. The chart below shows what could happen next in the coming days/weeks.
3 January Bitcoin price prediction: what next?
Bitcoin Elliott wave analysis, H2 (click to zoom)
After the dip to $11200 low, price has completed two zigzag waves (on the third one now) back and forth. I think price could continue sideways to complete a triangle. I have observed that these coins often breakout fast after a triangle pattern. If the triangle is complete, where the breakout happens could decide the near term direction. If DOWN, bearish correction continues. If UP, the bullish trend resumes. I think DOWN is more likely. On the other hand, the triangle may not happen. A break above $16600 should be the next confirmation for the bullish trend to continue.
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