The price of Bitcoin has decreased by 10% from yesterday’s open but has made a small recovery today. This could be the corrective wave of another impulse to the downside which appears to be most likely which is why I would be expecting more downside for the price of Bitcoin.
- A breakout to the downside below 0.5 Fib level has been made.
- The price is still below but a retest of the broken ascending support levels could occur on the current upswing.
- If the price gets rejected there and starts moving to the downside again it would indicate that the third wave out of the impulse to the downside has started developing.
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Bitcoin Analysis BTC/USD
From yesterday’s open at $11989 which was also the highest price has been we have seen a decrease of 10% as the price came down to $10784 at its lowest point today. Currently, the price is being traded at $11238 and is in an upward trajectory.
On the hourly chart, we can see that a breakout to the downside occurred below the ascending support levels and the 0.5 Fibonacci level after yesterday’s rejection at the minor horizontal level slightly below the prior high.
The price briefly entered the territory of the descending channel but immediately came up above and is currently stuck inside a cluster between significant support/resistance levels.
The price is below 0.5 Fib level but the bullish momentum caught could push the price slightly higher, potentially for a retest of the upper ascending trendline which was broken today on the way down.
If the price gets rejected there and doesn’t exceed the minor horizontal resistance level on the yesterday’s open we could expect to see further downside for the price of Bitcoin as it would imply that bullish momentum seen from Tuesday until yesterday’s open has been stopped out by the sellers who would then take control.
As we have seen the completion of the five-wave impulse to the upside it was most likely the C wave from the ABC correction which is the second wave from the higher degree correction, according to my count.
This is likely because after the first impulsive move to the downside from $13740 to $10790 we have seen another five-wave move of a lower degree which made a price recovery to $12360.
If this were to be the second wave it should have developed in a three-wave manner, but as it developed in a five-wave I think it was the A wave of a lower degree correction.
There could be a possibility that the three-wave correction ended on the 2nd of July in which case the five-wave impulse that followed till yesterday’s open would be the first wave off of the next five-wave increase to the upside but considering what’s has been said I don’t believe that’s likely.
The most significant area for the ending point of the expected decrease would be at around $8550-8500 where some of the major and minor trendlines and support levels intersect which is why I would be expecting a downfall to that area in the upcoming period.
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