The price of Bitcoin has continued increasing past the 0.382 Fibonacci level but found strong resistance which has caused the momentum to be stopped out. This looks more as a temporary consolidation after further increase than the end of the bullish momentum.
- Strong bullish momentum has seen over the weekend.
- Encountered resistance at the 0.5 Fibonacci level.
- Further upside could be expected.
Bitcoin Price Analysis BTC/USD
Over the weekend the price of Bitcoin continued increasing and came up by 17% – from Friday’s low at $9520 to its highest point on Sunday at $11141.
The price is currently being traded at $10864 as a small recovery has been made from today’s low at $10572 at its lowest spike.
On the hourly chart, you can see that the price of Bitcoin increased above 0.382 Fibonacci level which was considered as a significant pivot point whose surpassing could serve as another confirmation of the starting bull market.
As the price managed to not only stay above the level but continued increasing with impulsiveness we could say that a breakout occurred, but the momentum has been stopped out at the next significant Fib level which is the 0.5 one at $11307.
An interaction has been made with the 0.5 Fibonacci level but only as a quick spike before the price has started showing signs of struggle. This means that strong resistance has been encountered at those levels so we are yet to see if the increase continues.
The horizontal sideways range with the following increase seen from the 5th of June is most likely the next impulse wave to the upside and should be the 5th wave of the Minor degree. It started developing after an ABC correction which indicates that the five-wave move on the Minute count is being seen.
The price action has started forming another horizontal sideways range but judging by the momentum it might end as an ascending one which indicates further buyers interest even though the price has experienced a parabolic rise. This could mean that another increase is yet to come above the 0.5 Fibonacci level as the five-wave impulse is to develop fully.
Another possibility would be that the five-wave move to the upside of the Minute degree ended but there aren’t any signs of the momentum slowing down any time soon as the price retraced only by 5.8% from yesterday’s high but was continuously increasing from 10th of June and came up by 48.5%.