- Summary:
- The Bitcoin price is readying to retest its all-time high according to the Elliot Wave analysis. This means that the rally is getting started
The Bitcoin price is bouncing back after falling by more than 13% in the past 2 days. The BTC price is trading at $55,600, which is 5.3% above yesterday’s low of $53,090. Its market cap is more than $1.01 trillion.
What happened: On Sunday, the price of Bitcoin soared to an all-time high of almost $62,000 as investors braced for more demand as the US Treasury Department started to distribute the stimulus checks.
However, this rally did not last as the price suffered a major pullback yesterday. This happened for two reasons. First, after hitting its all-time high, many investors rushed to take profit. As this happened, more novice traders started to sell their holdings to avoid more losses.
Second, the Bitcoin price declined as investors reacted to news that India was mulling banning digital coins. A government source told Reuters that the bill to ban these currencies will be introduced in parliament soon. If it passes, India will become the first country to ban the possession of the currencies.
However, in reality, this will not have a major impact on the industry since Indians hold about $1.4 billion in cryptocurrencies. This is a small part of the overall industry, which has a market cap of more than $1.6 trillion.
Bitcoin Price Prediction
A look at the four-hour chart shows that the BTC price declined to $53,090. This price is important since it was along the ascending line that connects the lowest levels since February. It was also slightly above the important resistance level at $52,775, which was the highest level on March 3.
Most importantly, the Bitcoin price has now entered the fifth phase of the Elliot Wave pattern. Therefore, in my view, the stock price will keep rising as bulls target the all-time high of close to $62,000. However, a decline below $54,000 will invalidate this trend.
BTC price chart
