EagleFX

The price of Bitcoin has come up to the first significant horizontal resistance level last Friday which ended as a rejection causing the price to decrease over the weekend by around 6.7%.

The price came back to the levels from which the increase was made and started moving the upside again but has encountered resistance slightly lower than last Friday.

  • If we are seeing the continuation of the same correctional upside movement from last week the price wouldn’t exceed the first significant horizontal resistance at $8140.
  • A lower low would be expected below $7506 if we are seeing the development of the five-wave move to the downside from the starting downtrend.
  • If the bullish momentum shown today is stronger then the resistance found on Friday’s high we could see a continuation to the second significant resistance at $8500.

Bitcoin Price BTC

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Bitcoin Analysis BTC/USD

Last Friday the price of Bitcoin came up for interaction with the first significant horizontal resistance at $8140.

As the interaction ended as a rejection the price was propelled in a downward trajectory and came down to the levels of the prior low at $7576 which was a decrease of around 6.7%.

From today’s open which was around the mentioned prior low level, the price has increased by 5.43% with strong bullish momentum as the majority of the increase occurred in only one hour but we are now seeing the price struggling to keep up the upward movement slightly lower then on the prior high.


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On the hourly chart, you can see that the price encountered resistance, indicated by the wick from the upper side of the last hourly candle and is now likely to keep interacting with the current level as it’s retesting it for resistance further.

If the price manages to keep up the upward movement we could see a breakout to the upside from the first significant resistance point and to the next on at around $8500.

This would be unlikely if the found resistance proves to be stronger then the currently seen bullish momentum as a rejection at the current levels would likely lead to a lower low below the one made on 5th at $7506.

The price spiked to those levels on today’s open but a proper interaction with a lower spike would likely occur if the increase was seen would be stopped out at the mentioned first significant resistance as it would mean that from last Thursday we have been seeing the development of the five-wave move to the downside out of the starting downtrend.


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Posted by Nikola Lazić

Nikola holds a bachelor degree in Sociology, which gives him an edge as a financial markets analyst, i.e., to better understand the psychology behind the crowd´s positioning. Consequently, his preferred analytical tools are Elliot applications, combined with Fibonacci cluster formations. He started learning more about financial markets back in 2015 and is now a full-time trader.As a crypto expert, Nikola´s approach to the future of the industry favors a more decentralized market that falls in line with a new “anarchic” capitalism trend. His analysis have been praised by some of the most influential people in the cryptocurrency scene, such as Jeff Berwick (founder of The Dollar Vigilante Newsletter), Vit Jedlicka (the president of Liberland), as well as other relevant peers.


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