The price of Bitcoin has been moving sideways from yesterday’s open and hasn’t come above yesterday’s high. The price is in an upward trajectory but has encountered resistance but further upward movement would be expected as the ending wave is to fully develop.
- Price has been moving sideways but the futher upside would be expected to $8515.5 horizontal resistance
- We are likely seeing the ending wave of the five-wave increase which is why shortly a downturn would occur.
- If the price holds above the $6250 on the expected downturn it would likely mean that we have seen the bottom.
Bitcoin Analysis BTC/USD
From yesterday’s open at $8013 the price of Bitcoin hasn’t changed much as it is now hovering around the same levels. The price fell from the opening level to $7650 at its lowest point today but has since then come up and is currently being traded at $8042.
On the hourly chart, you can see that the price started moving in an upward trajectory from today’s spike to the downside but hasn’t been able to move above the yesterday’s high before encountering strong resistance at the current levels.
This is indicated by the first attempt ending as rejection with a slight pullback and the wick from the upside on the current hourly chart with the price entering into a second attempt.
As the price is in an upward trajectory further upside would be expected but as we are seeing the completion of the ending wave I wouldn’t expect it to go beyond the significant horizontal resistance level at $8515.
This level is significant as it is the ending point of the run up made on the 24th of July last year after which the price of Bitcoin started moving sideways before a downfall to $3226 level was made.
We are seeing the ending 5th wave on every count which is why after the completion of the current upside move I would be expecting a downturn in the market, and with the price of Bitcoin moving parabolically to the upside the expected downtrend could be equally powerful. Parabolic moves usually tend to end with an equally strong correction as the unsustainable momentum ends.
It is still unclear whether or not we are seeing the three-wave correction to the upside or a five-wave impulse. The currently seen 5th wave from the Minor count could be the 3rd wave of a higher degree count or it could be the end of the three wave correction which is why we are to evaluate the possibility of both scenarios from the expected downtrend and its depth and momentum.
If the price manages to hold above the broken significant resistance area at $6250-6500 on the expected downward move, it would likely mean that it was the 4th wave from the five-wave impulse.
But if the price continues moving below and enters the territory of the lower range it would most likely continue falling down to the next significant broken resitance at $4300 and would likely mean that we have seen a three-wave correction to the upside with new lows ahead.