close icon

Staying Two Weeks Ahead of Bitcoin ‘s Crash to $8000

The price of Bitcoin has been slowly losing ground since late-June when it touched $13 880. The bulls have been relying on the support near $9000 for over two months. They no longer have that luxury. BTCUSD was still gravitating around $10 000 on September 23rd. The next day, it plunged to $7998.

While the exact “cause” of yesterday’s decline is subject to speculation, there was a way to stay ahead of it all. When we applied the Elliott Wave principle to Bitcoin’s price charts, it gave us not one but two possible counts. Fortunately, both pointed in the same direction and had the same invalidation level. The chart below, sent to our subscribers on September 11th, depicts them.

Bitcoin has been vulnerable for some time

The 4-hour chart of BTCUSD gave us an insight into the structure of the pullback from $13 880. One possibility was that it represented a sequence of first and second waves to the south. In that case, more weakness in wave iii of (ii) of 3 was supposed to follow. This count was going to remain valid as long as Bitcoin was trading below the top of wave (ii) at $12 325.

The alternative was that the decline from $13 880 was a simple zigzag correction with a triangle in the middle, whose wave “e” up was in its final stages. Here, too, Bitcoin looked vulnerable and was not supposed to exceed $12 325.

Bitcoin Bears Didn’t Care Which Count Was Correct

Regardless of whether the drop from $13 880 is a sequence of first and second waves or a zigzag“, we thought, “it makes sense to expect more weakness towards $8000.” The updated chart below shows how the situation played out.

BTCUSD Dips Below $8000 as Elliott Wave setup plays out

Two weeks after the Elliott Wave analysis led us to conclude that Bitcoin was very likely to decline, the price dipped below $8000. The invalidation level at $12 325 was never threatened and each of the two counts is still possible.

Unlike many others, Elliott Wave analysts usually admit there is nothing certain in the markets. That is why we often work with primary and alternative counts simultaneously. Sometimes they are contradicting, but sometimes they confirm each other, which makes the decision-making process a lot easier. That is exactly what happened in Bitcoin this month.

What will BTCUSD bring next week? That is the subject of discussion in our next premium analysis due out late Sunday!

Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

The Bears Rule Over Ethereum Under $225

We last wrote about Ethereum on August 9th. The second largest cryptocurrency had plunged by 42% in less than two months and was hovering around $210. Unfortunately, our Elliott Wave analysis of the decline from $363 pointed to more weakness ahead. See the chart below to refresh your memory. This chart was included in our…

Read More »

Bitcoin Fulfills Yesterday’s Bearish Elliott Wave Setup

The price of Bitcoin plunged sharply on Wednesday and keeps falling early Thursday. BTCUSD reached an intraday high of $10 280, before crashing to as low as $9555 yesterday. Today, the bears are still in charge and managed to drag the price to $9320 so far. To sum it up, Bitcoin lost almost $1000 per…

Read More »

Litecoin Lost 50% in Two Months. Is the Pain Over?

Litecoin, the fifth largest cryptocurrency, lost more than half of its market value in the past two months. Between June 22nd and August 21st, LTCUSD fell from $146 to $70. Since crypto assets have no intrinsic value, investors often compare the current price to its higher level some time ago. This leads them to the…

Read More »

Ethereum Made a Decision the Bulls Won’t Like

A month and a half ago, Ethereum was hovering in the vicinity of $340 a coin. The bulls seemed unstoppable after lifting the price by over 320% in six months. Unfortunately, an invisible threat was brewing under the surface. Instead of simply extrapolating the recent uptrend into the future, we thought it appropriate to take…

Read More »

How Bitcoin Almost Collapsed Last Month

The price of Bitcoin returned above the $12 000 mark two days ago. As of this writing, the biggest cryptocurrency is still trading in the vicinity of $12k and the larger uptrend appears to be still in progress. Less than two weeks ago, things were not looking so rosy. BTCUSD was hovering around $9500 in…

Read More »

Ethereum Price to Face an Important Decision Soon

Bitcoin has been unstoppable in 2019 and the old “to the moon” chatter is getting louder and louder once again. Ethereum – the second biggest cryptocurrency – has been delivering generous returns since the start of the year, as well. ETHUSD, currently hovering around $343, is up 325% from its December 2018 low of $80.90.…

Read More »

Overbought TRON Can Tumble 30% Against Dollar

TRON became the 7th largest cryptocurrency by market cap following a 135% surge in the last month. It surpassed Litecoin and Stellar on its way up and is now within a striking distance of Tether in the sixth place. TRXUSD’s recent performance can easily convince investors it is time to join the bulls. The problem…

Read More »

More analyses