The price of Bitcoin continued increasing over the weekend, reaching the significant Fibonacci level at around $9400. Now that the price got stopped out at the significant horizontal resistance we are to see if the bullish momentum would continue. The price hasn’t retraced by much after the interaction which makes the likelihood of the uptrend continuation higher.
- Interaction with the 0.382 Fib level ended as a rejection.
- The momentum hasn’t been slowing down.
- A breakout to the upside could confirm the starting bull market.
- If the price doesn’t exceed the Fib level and immediately starts falling down it would confirm that the upward move from 26th of April ended.
Read: How to Invest in Bitcoin
Bitcoin Price Analysis BTC/USD
From Friday’s low at $8160 the price of Bitcoin increased over the weekend by 14.55% as it came up to $9400 at its highest point on Sunday. The price is currently being traded at $9170 as the price started pulling back slightly but has shown a parabolic rise with the price still being in an upward trajectory.
On the hourly chart, you can see that the price of Bitcoin came above the prior high level which was presumed to be the ending wave of the impulsive move to the upside and made an interaction with the 0.382 Fibonacci level – a highly significant pivot point.
The bullish momentum has been stopped as the interaction ended as rejection but the price hasn’t gone down by much as support has been found on the descending trendline from a higher degree.
On the way up the price managed to go above two significant horizontal resistance points, first being at $8140 and the next one at $8500, finding resistance at the Fibonacci level. This indicates that the bullish momentum has caught up some traction which makes the rise more sustainable.
If the price holds below the Fibonacci level an immediate drop would be expected but considering that the momentum hasn’t stopped, but instead only slowed down we could see a breakout to the upside on the next attempt.
If the 5th wave of a higher degree ended on the 30th of May the increase was seen could be the second correctional structure with the third wave to the downside now starting, but if the increase seen is impulsive and we see a breakout to the upside it would mean that the 5th wave of the Minor count hasn’t ended.
The Fibonacci level is considered as a significant pivot point as if the price goes above it a confirmation of the bull market could be indicated further. But if the price doesn’t exceed the level and starts immediately falling down it would mean that the resistance found at those levels triggered another round of selling which would then propel the price in a downward trajectory.
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