The price of Bitcoin hasn’t gone above the first significant resistance level before starting to form a cluster slightly below it.
This indicates that the resistance has been lowered as the sellers are putting pressure on the price at the current levels. This implies that the price is likely now headed for a lower low which will confirm the starting downtrend.
- First significant resistance at $8140 has been respected.
- If we are seeing the development of the five-wave move to the downside a lower low to $7056 would be likely.
- If the price continues moving to the upside and breaks the $8140 resistance the next significant one would be at around $8500.
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Bitcoin Price Analysis BTC/USD
From yesterday’s open at $7581 the price of Bitcoin has increased by 5.76% as it came up to $8017 at its highest point today.
Last Friday the price came up to $8140 which was the first significant horizontal resistance level on the way up which is why the price got rejected at those levels and was sent back to the levels from which the increase was made.
As today we have seen the price coming slightly lower than on Friday it has gotten close to the significant resistance point again and is currently forming a cluster as indicated by the price action.
Looking at the hourly chart, you can see that the price hasn’t come up above the purple interrupted line which is the mentioned first significant resistance point above which it is considered to be the start of the 2nd wave’s territory out of the presumed five-wave move from Thursday 30th of May.
If we are seeing the starting downtrend with the first five-wave move developing to the downside, the price cannot enter the territory of the 2nd wave on the 4th and as the level was respected the likelihood of the starting downtrend in a five-wave manner is highly likely.
If we are seeing the development of the five-wave move to the downside the price cannot go above $8140 before going down for a lower low below $7513 which is the ending point of the presumed 3rd wave, potentially ending around the 0.236 Fibonacci level at $7056.
But if the price continues moving to the upside from here and goes above $8140 we could have seen the three-wave structure ending last Friday with now the second correctional structure to the upside developing in which case the next significant resistance point would be at around $8500.