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 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.
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.