The price of Bitcoin has continued the breakout which started yesterday, as the price moved sideways from Monday. This breakout could be an early indication that we’ve seen the top, or could just be another retracement before another run-up which is short to be verified.
- A breakout continued and was made to the projected level, but further continuation could be expected.
- If the price holds above $7444, we could be seeing the development of another five-wave move to the upside.
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Bitcoin Analysis BTC/USD
From yesterday’s open at $8062 the price of Bitcoin has decreased by around 7%, measured to the lowest point the price has been today which is at $7496.6.
Looking at the hourly chart, we can see that the price broke the minor horizontal resistance level which started yesterday as the first move down went below the level after which another attempt has been made for the price to keep up the upward trajectory, but the descending trendline validated itself as a resistance point yet once again, before the price collapsed below the significant horizontal level at $7887, and is currently being traded at around $7600.
The price has gone to the ascending trendline like expected for interaction but only as a quick spike for now but further interaction could be expected with the hourly candle closing on its levels.
This ascending trendline is the first support point the price has encountered on the way down. Now that the price is in a downward trajectory we are going to see if the weekend’s increase was corrective or impulsive as if the price holds above the $7428 level it could be impulsive.
We are most likely seeing a continuation of the last week’s downside movement which was made in a five-wave manner but the move could also very well be the 4th wave from the impulsive wave to the upside.
The first scenario looks more likely to me as from here I would be expecting further downside below the ascending trendline and in a five-wave manner similarly, like we’ve seen last week which would result in the price going back to $7000.