Another parabolic rise has been seen for the price of Bitcoin in the last 24 hours, but the price is looking like it started encountering resistance.
There aren’t any major signs of weakness as the bullish momentum is still strong, but considering the over-extension, the price has experienced and the proximity of the next significant Fibonacci level we could be expecting a sharp downturn shortly.
- From 10th of June, we’ve seen the development of another five-wave impulse to the upside.
- The price increase above the 0.5 Fibonacci level is likely its 5th wave which is why soon a downside move could be expected.
- We are likely to see a minor increase before the completion of the 5th wave which will bring the price up for interaction with the next significant Fibonacci level or even slightly further.
- The five-wave impulse from 10th of June is considered the be the 5th wave of a higher degree which is why after it’s completion I would be expecting a higher degree correction with the price coming significantly lower for at least 30%.
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Bitcoin Price Analysis BTC/USD
From yesterday’s open at $10914 the price of Bitcoin increased by 16.45% today as it came up to $12713 at its highest point.
The price has spiked even higher coming to $12939 but the hourly candle left a large wick to the upside as it pulled back to $12431 immediately after which indicates that the seller’s territory has been encountered.
The price continued increasing past the 0.382 Fibonacci level and has been in a parabolic upward trajectory, headed to the next one at around $13207. This upswing has started on the 10th of June and is a five-wave impulse with the price action currently developing its 5th wave.
Prior to the start of the impulse wave to the upside, we have seen correctional downside five wave move which was a WXYXZ and was considered to be a potential first wave of the expected downturn, especially prior to its formation we’ve seen what looked like an ending diagonal.
As the price continued increasing and another five-wave move to the upside developed it means that the 5the wave of the higher degree hasn’t ended, implying that the WXYXZ correction was either the 3rd wave of a lower degree from the correction on the 4th wave of the Minute count.
Another possibility would be that it was the 4th wave of the Minor count which is a higher degree one which could be viewed in a scenario in which from 15th of December we have seen an impulsive five-wave move to the upside.
The price is getting overextended as the parabolic rise continues and considering the amount of increase the price has experienced without a serious correction of 30-40% and that the wave structure implies we are seeing the ending wave we could be expecting a sharp downturn shortly.
The largest pullback seen since the 6th of February was the one made from 30th of May till 10th of June and was around 16%, while measured from 6th of February till today’s high the price increased by over 277%.
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