Day after day Bitcoin keeps breaking new all time highs. Today, after hitting another all time high of $2760, Bitcoin’s price dropped over 10% right after as investors took profits. Keep in mind, that while the most recent $400 price drop may seem harsh, the fact is only 18 hour earlier the current low was an all time high. As Bitcoin keeps receiving media attention, traders and investors alike are buying the crypto like crazy, if the current support at $2400 holds next stop is $3000.
You know when celebrities start hopping on the Bitcoin train that things are going well. Dan Brandon Bilzerian, an American socialite, professional poker player, and trust fund beneficiary, recently announced that he bought “a shitload of bitcoin.” He posted the following video to share the news to his 22 million Instagram followers:
Furthermore, Bitcoin has been mentioned at least three times on ABC News in Australia, some on the network even said that it might replace USD. I remember during the Bitcoin bubble of 2013 when it hit the $1200 peak, NBC News and FOX News had some extensive coverage on the cryptocurrency which kept the bubble going for a few more days. While it is true that mainstream media has been following this price rally for awhile now, this extended coverage could potentially signal the end of this Bitcoin bubble.
The big question is, will the positive price trend still continue, or are we nearing the end of this bubble? The recent price crash has surely caused many Bitcoin holders to sell some of their stash, however is this simply a necessary correction?
Ew-forecast from Tradingview believes that Bitcoin will surely pass $3000, but that will be after a correction to prices as low as $2200. Ew-forecast provided a chart predicting Bitcoin’s future price action using Elliot Waves:
Chart: Tradingview
“Bitcoin is very strong, and based on personality it’s wave 3 which is not far away from its target, so be aware of some set-backs. Based in % it may not be just 2 or 5%, but rather around 20-30% in wave 4.”
According to the chart, we see that Bitcoin is predicted to correct itself down to the $2400 levels, after which it should see its final wave which should take it past $3000. It all depends on the outcome of today’s market. If the price keeps dropping, it may set off a chain reaction which will cause many traders to dump their stashes. However, if the price stabilizes at the $2400 range, or even rises, it will give time for the balloon to expand after having so much air blown into it.
Looking at Coincheck’s price of Bitcoin in Japan, we can see it is trading at roughly $2850 in the country. Comparing that to the current price of $2447 on Bitstamp, we see that Bitcoin is still trading at a 10% premium in Japan. As we mentioned earlier, if the premium in Japan remains, it is a signal that the price trend should keep on going as traders are still buying up the crypto.
Dislaimer: This is not trading advice, this article is for educational purposes only. If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.
