The price of Bitcoin has decreased by around 10% in the last 24h but there is still a possibility of another increase to $9400 before we see the expected higher degree downside move start.
- BTC Needs to hold above $8240 if another increase to $9400 is to be expected.
- Shortly a downturn is to be expected which could have already started as the price action showed impulsiveness.
- The downside move is expected to end on some of the broken resistance levels as a retest of support.
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Bitcoin Analysis BTC/USD
From yesterday’s high at $9120 the price of Bitcoin has fallen to $8135 at its lowest point today which was a decrease of 10.8%. The price is currently being traded slightly above today’s low and is currently sitting at $8240.
Looking at the hourly chart, you can see that the price was in a sideways range from Monday before it attempted to move to the upside again but barely managed to exceed the previous high made last Sunday which ended as a failure with the price immediately dropping down.
The price came down to its first significant support level which is the previous wave’s ending point and is considered to be the first wave out of the five-wave move on the Micro degree which the 5th wave of the Minute count.
As the price hasn’t entered the territory of the 2nd wave the possibility of another increase is still there as the 5th wave should develop. As the previous spike exceeded the prior high it could have been the 5th wave with the price, in that case, starting the expected higher degree downside move.
I don’t believe that it was as the price action looks more corrective in the horizontal sideways range. Also, the price hasn’t interacted with some of the significant resistance levels out of which the most significant one is the 0.382 Fibonacci level at around $9400.
If the price holds above the current support level at $8240 and starting moving to the upside again and manages to go back up above $8500 the possibility of another increase to the $9400 would be likely.
But if it goes below the current support level and enters the territory of the lower range it could mean that the 5th wave ended with the price currently starting the expected downside move to some of the significant resistance levels for a retest of support.