At present, the bull structure above $5k doesn’t have any support. In order for Bitcoin to move higher, it needs to establish support, making the previous $5k resistance zone a support zone. We haven’t done that yet. This is the way of markets, previous resistance becomes subsequent support. Therefore, Bitcoin will be making its way back down to $5k, attempting to establish a $5k support zone. If not now, then soon.
My own time preference and expectation is that it makes its way down to test $5k and establish a support zone before the October 25 Bitcoin Gold hardfork. That gives plenty of time for it to then bounce off this support, and move higher, in anticipation of the fork. People want their free Bitcoin Gold afterall. Also important to note is the lower trend line for the recent correction which intersects the $5k price zone just before the October 25 fork.
A lot can happen in crypto in a week. After October 25, we will need to re-evaluate market conditions to see if Bitcoin will move higher as part of a bull continuation, or lower as part of a deeper Elliot Wave ABC correction. Though, the uncertainty surrounding the November 18 Segwit2x fork, suggests further downward price movement after the Bitcoin Gold fork.
Also keep in mind, that prices always return to the trend line, so we may see returns to either the medium-term or long-term trend lines before the November 18 Segwit2x fork.
These price movements will most likely affect the rest of the crypto market, with commensurate price action in Ethereum and other alts. I will do a separate but similar analysis for Ethereum shortly.
Target I: $5k before October 25
Target II: $5.5k or greater on or just before October 25
My own time preference and expectation is that it makes its way down to test $5k and establish a support zone before the October 25 Bitcoin Gold hardfork. That gives plenty of time for it to then bounce off this support, and move higher, in anticipation of the fork. People want their free Bitcoin Gold afterall. Also important to note is the lower trend line for the recent correction which intersects the $5k price zone just before the October 25 fork.
A lot can happen in crypto in a week. After October 25, we will need to re-evaluate market conditions to see if Bitcoin will move higher as part of a bull continuation, or lower as part of a deeper Elliot Wave ABC correction. Though, the uncertainty surrounding the November 18 Segwit2x fork, suggests further downward price movement after the Bitcoin Gold fork.
Also keep in mind, that prices always return to the trend line, so we may see returns to either the medium-term or long-term trend lines before the November 18 Segwit2x fork.
These price movements will most likely affect the rest of the crypto market, with commensurate price action in Ethereum and other alts. I will do a separate but similar analysis for Ethereum shortly.
Target I: $5k before October 25
Target II: $5.5k or greater on or just before October 25
Comment:
For the temporary bull scenario, in which we test ATH and beyond, and then correct only after the Bitcoin Gold fork:
