The price of Bitcoin continues increasing but the momentum is slowing down as we approach the completion of the impulsive move. Further upside could be seen but shortly we could see a pullback as the price increased parabolically to the upside with unsustainable growth, increasing by 19%.
- The price increased further which mean that the 5th wave hasn’t ended so further upward movement could be seen
- The price action is showing signs of bullishness but unsustainable growth may lead to a sharp downside move shorty
- The price needs to hold above $6250 in order for the bottom to be confirmed
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Bitcoin Analysis BTC/USD
From yesterday’s low at $6878.9 the price of Bitcoin has increased by 19.07% measured to the highest point the price has been today which is at $8190. Since then the price has pulled back to $7800 area but only with a quick spike down as another increase is now developing with the price trading around $8150.
The price increased parabolically again after a minor correction occurred which was the 4th wave and looking at the wave structure I think that there is still more room to go before the completion of the final move.
The price has increased by around 57% from 26th of April when it was $5206 at its lowest point and is the starting point of the 5th wave from the Minor count which pushed the price inside the territory of the upper range above the significant horizontal resistance level at $6256 and broke out from the ascending channel in which it was since 15th of December when the price was at its lowest since the start of the bear market.
This situation looks like we might be seeing the beginning of the bull market but now as the price action developed fully a downturn would be expected. From this expected downturn we are to see and reevaluate the possibility of the bear market bottoming out as from its depth and momentum the selling power would be indicated.
If the price of Bitcoin bottomed out on 15th of December when the price came down to $3226 we are seeing the development of the five-wave move to the upside out of which the increase seen from 8th of February until now is its 3rd wave.
This is why now if the price holds above the significant horizontal resistance area at around $6250 and start moving to the upside again it would confirm it, but if it goes below the significant area and enters the territory of the lower range it would be problematic.
In theory, the price could go as low as $4300 on the 4th wave to the presumed 1st ending point without the possibility of another increase being overruled, but since the area around $6250 is highly significant if it stops offering support I would rather consider that the increase was the Y wave from the WXY three-wave correction which was my primary count until recently.