The price of Bitcoin has continued its attempt for a breakout above the significant Fibonacci level but the increase ended slightly below it before we have seen signs of struggle. This could be an early indication that the price increase isn’t going to continue for much longer but this will shortly be verified.
- The price attempted to move above the significant resistance point but the attempt ended as a rejection slightly below the horizontal level.
- If we have seen the second correctional structure after the previous ABC ended the third wave to the downside would be expected.
- The first significant level with whom the price could interact would be at around $8500 but if we are to see the downtrend continuation the price would be set to go significantly lower.
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Bitcoin Price Analysis BTC/USD
On yesterday’s open the price of Bitcoin was sitting at around $9005 from where an increase of 4% has been made with the price reaching $9368 at its highest point today. Since today’s’ high the price started decreasing again and is currently being traded at $9247.
On the hourly chart, you can see that the price bearly reached 0.382 Fib level before it started showing signs of weakness indicating again strong sellers’ presence at those level. The Fib level is highly significant and is serving as a strong resistance point.
The price made three interactions with the area and hasn’t managed to come up above it which is why now a pullback looks likely as the buyers are losing momentum and sellers are gaining control.
From last Monday the 10th of June, we have seen the price of Bitcoin increasing by 25.19% but the increase might be corrective in nature as I think that the higher degree 5th wave (Minor count) has ended on the 30th of May.
After the price reached $8977 on the 30th we have seen an impulsive downside movement but the price action hasn’t developed a five-wave structure, instead, we have likely seen and ABC three-wave correction.
This could indicate that the ascending structure which followed is also corrective and would, in that case, be the second structure with the third one to the downside now expected.
The other possibility would be that the 5th wave hasn’t ended and that we have seen a higher degree correction ending on 30th which would, in that case, be its 4th wave. If this is true the price would break out to the upside above the significant Fibonacci level, but since the price is struggling to keep up the bullish momentum I believe the first scenario is more likely.
In either way, since strong resistance has been encountered I would be expecting a pullback from here at least to some of the minor horizontal levels out of which the first one would be at $8500, but if we are to see the third wave to the downside it could result in the price going below last Monday’s open at $7511.
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