It has been a very rough week for crypto investors all around the world, nearly all major digital currencies sold off during the week and the sell-off is far from over.
One of the major reasons for the sell-off includes the new tax regulations being considered by the U.S.A, the new crypto ban, and the nationwide crackdown on crypto mining being put effect in China, and Tesla’s decision to stop accepting Bitcoin for car payments.
This Week’s Cryptocurrency Performance by Market Cap
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Bitcoin Sell-Off Might Be Far From Over!
From its ATHs of $65,361, the Bitcoin price has crashed more than 56% in value in less than 2 months. This dump in the Bitcoin price has caused a massive sell-off in the whole crypto market with Altcoins dumping hard.
Right now, Bitcoin is bouncing off the $28k key support giving crypto bulls a little breathing room. But is this sell-off over or should we expect the price to go lower in the coming days?
To answer that question, we would be carrying out an Elliot wave analysis of this bear trend in Bitcoin.
Elliot Wave Points To Lower Movement In Price
A typical Elliot wave trend looks like the image above, does it look familiar? This same price structure is playing out on the Bitcoin higher timeframe and below we show it clearly on the daily timeframe!
This means Bitcoin has one more push to the downside before we can say this Bitcoin sell-off is over.
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Price Prediction: What to Expect Next Week!
If Bitcoin follows the Elliot wave Pattern as we have predicted, then next week might be very choppy for the Bitcoin price as the cryptocurrency might retrace back upwards to form that 4th wave in the Elliot wave series before crashing back down for the 5th wave.
And while this is not a call for you to sell Bitcoin, it is very important you keep this Elliot wave analysis in mind while taking any trade on Bitcoin next week. Because a lot of crypto traders will make the mistake of taking the 4th wave retracement in price as the end of the sell-off.
For trading ideas, you can expect us to provide you with daily crypto analysis and short-term trades on the lower timeframe for Bitcoin all through next week. So, subscribe to the Bitcoinsensus website to get post notifications.
What Does This Bearish Trend Mean For The Altcoins?
A bearish Bitcoin is very negative for the Altcoin market, but if Bitcoin begins the Elliot wave 4th wave retracement next week, then there is a very high probability that we might see a bounce and rally across altcoins.
So looking for short-term buy trades on Altcoins would be the best. Some of the pairs we are currently watching includes:
The same bearish pattern on Bitcoin is playing out on the ETHUSD pair. We expect to see a 4th wave retracement also play out sometime next week before the sell-off continues.
We can also expect this price retracement to affect all Altcoins as Ethereum is a key direction indicator for the Altcoin market.
BNBUSD is currently running into a key support level at the 4-hourly chart. If the price holds this $186 support, we can expect to see a rally back up from there to at least $350 next week.
XRPUSD is also trading at a very key level right now, and we want to see that level hold. If this happens then there is a very high probability that we might see a little rally in XRP price come next week.
Cardano has had a massive crash back to the lows it traded when it was first launched. If this $0.99233 support level holds, there is a very high probability that we might see a price bounce and rally in Cardano come next week.
DOGE is trading around the $0.2207 key support. Price has bounced off this support before and might do so again. So next week we will be looking for short-term trade setups on DOGE coin once it bounces off that support.
Price Prediction: Final Verdict!
We are currently bearish on the crypto market. However, we believe next week might see a lot of coins including the Bitcoin rally a bit. But this in no way signifies the end of the crypto sell-off or bearish trend we are currently experiencing.
So next week is the best time to reduce your position size and be a little risk-averse especially if you are taking buy trades because Bitcoin is in a bearish trend and we might see a lot of bullish fakeouts. These bullish fakeouts occurred a lot this week and a lot of traders were caught on the wrong side.
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