You know that Bitcoin has always been a hot topic among investors around the world and it has become the center of investment for a long time at Elliott Wave.

However, over a few months, it has shown a disappointing downtrend with new lows. Elliott Wave As it is evident that the entire market depends on the movement of this prominent cryptocurrency.

Although it has declined very badly over the months, there are still some hopes left for investors. There are some theories that we follow so that we can understand how it will go further.

We are going to use the Elliott Wave theory to predict the support level of Bitcoin and figure out what will happen if it breaks this level.

Current Support Level

Although Bitcoin is falling, there is a crucial support level of $17,500 which is going to be respected by it. This support is going to play a vital role because several times we have seen it maintaining this level and not going below it.

What if Bitcoin respects this level?

If we go by Elliott Wave Study, we figure out that, Whenever a security price respects any particular support level 2 to 3 times then it bounces back because it is considered a strong support level.

If the same happens with Bitcoin then it will bounce back to the new levels and will be good news for the Bulls.

What if Bitcoin breaks the 17500 support level?

Security moves between support to support or sometimes resistance to support. It is important to see how strong a support level is but if It breaks that support level then it will go down further to the next support level and stay there for a while.

However, if it is strong enough, the stock price stays on that level and bounces back but if it is weak support then it will break that support level and go down to the new support level.

In the case of Bitcoin, the next support is a nightmare for investors because it is $4000 which is quite below most of the stop loss points. Elliott Wave