In the last 24 hours, Bitcoin’s price hasn’t changed much but is showing signs of bullishness from yesterday’s open.
As the momentum is weak it got stopped out at the minor resistance level, but further upward movement would be expected to some of the more significant resistance levels for interaction.
- Expected correctional upside movement has begun as the price exceeded yesterday’s resistance on today’s high.
- The price is struggling to keep up the upward momentum but is expected to continue doing so slightly further.
- If we are seeing a five-wave move developing to the downside from last Thursday the price cannot go above $8140
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Bitcoin Analysis BTC/USD
The price of Bitcoin has increased from yesterday low at $7580 to $7980 at its highest point today which is an increase of 5.25% but is currently being traded slightly lower and is struggling to keep up the upward momentum.
As you can see the price came above the ascending triangle’s resistance level and continued moving to the upside until it came to the next minor resistance point at the prior downside moves 4th wave where it found resistance. This is indicated from the wick on the upper side of the last couple of hourly candles.
From here the increase is likely to continue to some of the more significant levels which have been pointed out in my previous analysis and are at $8140 and the next one at $8500.
If we are seeing the development of the higher degree 4th wave out of the five-wave move from last Thursday, the increase would end as a rejection at the first significant level at $8140 but if we are seeing another kind of upside correctional movement the increase could continue to the second at $8500 before the next downturn.
In theory, there is still a possibility of another higher high before the downtrend which could bring the price of Bitcoin to $9400 are around the 0.382 Fibonacci level for interaction but as the market is currently overruled with a bearish sentiment I don’t believe that’s likely.
More likely we are seeing the first wave out of the developing downtrend in which case it would end as a five-wave move with the price getting rejected at around $8140 and going down further to the 0.236 Fibonacci level at $7056 which would be its 5th wave.
As this would be only the first wave further low would be expected for the price of Bitcoin and the first significant support zone is around $6250 which was a significant horizontal resistance point on the way up.
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