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Shock and Awe: Bitcoin Losing Momentum Could Result in Elliot Wave Correction to $1,000

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There’s no denying that Bitcoin is at a critical junction, either ready to fall deeper into a downtrend or explode into a new bull rally driven by pre-halving hype and speculation.

Losing momentum here, according to one crypto analyst, would almost certainly lead to an Elliot Wave Theory C-wave that would take the cryptocurrency further down toward $1,000 – a move that would surely leave the crypto market in shock and awe.

Bitcoin Losing Momentum Could Result in Shocking Fall to $1,000

Bitcoin price recently spiked from local downtrend lows of around $6,400 toward a high of over $9,200 before a rejection at overhead resistance stopped the rally in its tracks.

Although the bullish momentum was strong, causing Bitcoin to gain over 40% in 30 days, that momentum has since been waning after the rejection occurred, as traders begin to fear that the breakout wasn’t enough to sustain positive price action into a new uptrend.

If Bitcoin loses further momentum here, it could be devastating for the cryptocurrency market.

Elliott Wave Theory Suggests C-Wave Would Take Crypto Back Nearly a Decade

A failure to maintain momentum, according to one crypto analyst, would likely result in an Elliott Wave Theory C-wave driving the price of the first-ever cryptocurrency down to just $1,000.

Related Reading | Psychology of a Market Cycle: Are Bitcoin Investors In Denial?

However, such a move would first require that Bitcoin falls through the 100-week moving average, which is currently sitting at roughly $7,200. The leading cryptocurrency by market cap losing that level would almost certainly cause a retest of the 200-week moving average.

The 200-week moving average is what caught Bitcoin at its current $3,100 bottom in late 2018, and held it as support, igniting a new rally in 2019.

This analyst speculates that Bitcoin wouldn’t hold in another test, and it would send the price per BTC tumbling down towards $1,000.

According to Elliott Wave Theory, impulse waves move in the primary trend direction with 5 waves, then a three-wave corrective ABC pattern follows. In this scenario, the A-wave target would have been $3,100, and B-wave would be the top in late June at $14,000.

bitcoin price chart abc elliott wave theory correction

Click for a full-sized version.

In ABC corrections, the C-wave is always lower than the A-wave, suggesting that such a move would put a new lower bottom in, potentially at $1,000 – the previous bull market top before Bitcoin reached $20,000.

Related Reading | Elliott Wave Theory Suggests Bitcoin May Be Due For Biggest Correction Yet 

A fall to $1,000 would cause extreme shock and awe across the crypto industry, and could even cause many crypto companies to go bankrupt or fold as a result. Some analysts claim that this is all necessary for Bitcoin to experience another bull market – that it first requires the investors of the previous cycle to be entirely flushed out, much like what occurred during the dot com bubble.

However, if Bitcoin holds here, and momentum maintains, the crypto asset could go on a new bull run leading into the asset’s upcoming halving.



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Crypto News

Bitcoin SV price down by 3 pc: Warming up for $350?

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The Bitcoin Satoshi Vision or Bitcoin SV price chart is stale at the time of writing with little to no major changes in the price movement despite the fact that the market is telling a different tale altogether.

In the past 24-hours, Bitcoin and Ethereum have recorded a gain of over four percent, while Ripple XRP recorded a gain of over three percent. However, Bitcoin SV is the only cryptocurrency among the top ten that is down by over three percent in the last 24-hours.

Bitcoin SV price chart 1 - 18 Feb 2020Bitcoin SV price chart by Trading View

Bitcoin SV price stood as high as $326 in the past 24-hours; however, at the time of writing, BSV price has come down to the $307.280 mark.

Bitcoin SV price movement: What to expect?

Cryptopolitan reported yesterday that the cryptocurrency is in a major head and shoulder pattern formation, and so it has been since the 15th of February 2020. While the shoulder played out rather well, a sudden crash in the Bitcoin price took the whole market down as soon as BSV price started gaining bullish momentum, as seen on the chart above.

The chart also displays that the cryptocurrency is holding strong as another small reverse head and shoulder pattern formed on the 18th of February 2020 to help BSV price recover from the plunging market low but not to much avail.

Bitcoin SV price predictions - 18 Feb 2020Bitcoin SV price predictions by Trading View

While two important traders and analysts on Trading View, BSVTrader and AstroManiak, are both of the views that the cryptocurrency is moving in an ascending channel, therefore primed for further gains in the near future. Where AstroManiak believed that BSV would soon hit a new high above the $350 mark.

Featured Image by BitcoinSV

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