The price of Bitcoin started interacting today with the same significant resistance level with whom an interaction has been made last Friday and ended as a rejection causing the price to go back to the levels from which the increase was made, again indicating that the sellers are putting pressure on the price around $8140.
As the price is currently being traded at those levels another rejection could be expected which could confirm the starting downtrend.
- Another interaction with the first significant resistance point is being made today.
- If we see a rejection the price is likely to go below $7520, potentially to $7056
- If the price continues moving to the upside the next significant resistance would be at around $8500
Bitcoin Price Analysis BTC/USD
From Monday’s open the price of Bitcoin has been on the rise and has increased by around 8%, coming from $7577 to $8183 at its highest point today. The price is currently being traded slightly below today’s high as it encountered resistance at the significant horizontal resistance level.
Looking at the hourly chart you can see that the price came back to the first significant horizontal resistance level at $8140 which has been interacted with last Friday with the price getting rejected there an immediately moving back to $7508 from which the increase was made.
We are seeing the price of Bitcoin is in a horizontal range between the mentioned levels after an impulsive downfall was made last week of over 16%.
This horizontal range could be interpreted as consolidative after an impulsive move to the downside with the price eventually continuing its downward movement.
If we have seen the completion of the impulse wave to the upside on 30th of May the downward move which followed would be either the first impulsive five-wave decrease to the downside in which case we are to see a lower low to around 0.236 Fibonacci level at $7056 which would be its ending wave.
But we could have seen the completion of the three-wave move on 5th of June in which case the horizontal range could be the second corrective structure which would bring the price of Bitcoin back to around $8500 which is the next significant horizontal resistance level.
This will shortly be verified as if we are seeing the development of the downward impulse the price cannot enter the territory of the 2nd wave on the 4th in which it is presumably in, so an immediate rejection at the current levels with the price going below $7508 would be viewed as a confirmation.
But if the price, however, continues increasing from here and manages to go above the currently encountered resistance we could see interaction with the next one at $8500 before another downturn.