Over the weekend the price of Bitcoin has started increasing again and with strong momentum as a breakout from the corrective triangle has been made.
This breakout momentum is the ending wave of the counts of all degrees which is why after its completion a higher degree correction is likely to take place, but not before further increase as the breakout momentum continues to push the price for another high.
- The price exceeded the prior high as a breakout from the corrective structure was made, which validated that we are seeing the development of the 5th wave.
- This 5th wave is from the Minute count from the impulsive move from 26th of April which is the 5th wave from the higher degree Minor count.
- As it hasn’t developed fully another higher high would be expected before we see a sharp downturn in the market.
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Bitcoin Analysis BTC/USD
The price of Bitcoin was sitting at $7840 at its lowest point on Friday, from where we have seen an increase of 13.58% over the weekend as the price came up to $8905 at its highest point today.
Looking at the hourly chart, you can see that the price came up to the exactly projected levels for the ending of the 5th wave of the Minute count, but that doesn’t mean that the increase is over.
As we have seen a breakout from the ascending triangle and that with strong momentum, the price is now likely to continue moving to the upside as the 5th wave should develop fully.
The 4th wave correction has developed the ascending triangle from which, yesterday a breakout has been made and by looking at the wave structure it appears that It has developed on the first two waves out of the expected five-wave move which is why it is now most likely developing its 4th lower degree one, as we are seeing the yesterday’s momentum slowing down.
If this is true then another wave and I believe the final impulsive move to the upside would now develop after which we are to the higher degree downside move as the impulsive increase which started on 26th of April would.
This increase would be the 5th wave of the higher degree count which is why after its completion it would mean that the 7th of February would end.
The expected downside move would most likely lead the price of Bitcoin back to some of the broken resistance levels on the way up, as to retest them for support and the most significant one is at around $6250.