Another attempt for a breakout to the upside has been made but the attempt ended as a failure with the price getting rejected at the significant Fibonacci level.
This could indicate that the bullish momentum isn’t stronger then encountered resistance at least at the moment which is why a pullback to some of the broken resistance levels could be seen if not the start of the downturn altogether.
- The price has been stopped out at the significant resistance.
- A pullback to $8500 or to $8140 would be expected.
- If the price doesn’t find support there and continues decreasing further it could indicate the start of another downturn.
Bitcoin Price Analysis BTC/USD
On yesterday’s open the price of Bitcoin was sitting around $8985 as the price came down to the descending trend-line after an interaction was made with the 0.382 Fibonacci level on Sunday.
From there the price made another attempt to surpass the Fibonacci level but the interaction again ended as a rejection causing the price to pull back to $9058 at its lowest point today and is currently being traded at $9134.
On the hourly chart, you can see that the price has increased from last Monday the 10th of June and managed to go above two significant horizontal resistance levels – first being at $8140 and the second around $8500, which indicated strong bullish momentum.
As the price increased parabolically the next, and the most significant horizontal Fibonacci level was reached and has been interacted with for two times with the interactions ending as rejection the price hasn’t managed to break out to the upside.
This could mean that the bullish momentum caught from last Monday isn’t strong enough to surpass the mentioned significant resistance at around $9400 which is why we could see a steeper pullback before another attempt.
If we see a pullback the price would likely find lookout for support around the broken resistance point on the way up, so a retest of the $8500 would look likely. But if we have seen the end of the bullish rise altogether, the price would continue moving further to the downside.
As the five-wave impulse to the upside from 26th of April likely ended on 30th of May the price action movement we are now seeing is viewed as corrective in nature with the increase was seen from last Monday being its second wave.
This means that now the third wave to the downside should start shortly as a retest of the most significant resistance occurred, but if the price continues moving above the 0.382 Fibonacci level it could mean that the five-wave increase previously seen hasn’t marked the end of the higher degree 5th wave of the Minor count and that another impulse wave to the upside is developing.
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