The price of Bitcoin has decreased by around 10% from yesterday which indicates impulsiveness and could mean that the expected downtrend has started. This would shortly be verified from the expected interaction with the significant levels but it looks highly likely.
- A breakout from the ascending trendline has been made with the price going below significant horizontal support levels as well.
- Last Thursday could have been the end of the 5th wave which means that we could be seeing the starting downtrend.
- If the price continues moving to the downside the first significant support area would be at around $6250
Bitcoin Analysis BTC/USD
From yesterday’s high at $8742, the price of Bitcoin has decreased by around 10% today as it came down to $7856 at its lowest point.
Over the weekend we have seen the price reaching $8970 and has expected to continue potentially increasing for another minor higher high and interact with the 0.382 Fibonacci level at around $9400 after the higher degree downturn starts.
The price has fallen below the significant horizontal support at $8500 and broke the ascending support trendline made by the previous upside move. This could be an early indication that the expected downturn has started as the price fell outside the territory of the ascending structure in a three-wave manner.
The interaction with the 0.382 Fibonacci level might still occur but it looks less likely at the moment as the five-wave impulse looks like it ended.
If we have seen the completion of the five-wave impulse which is the sub-wave of the 5th wave from the Minor degree the decrease seen from last Thursday could be the starting downtrend with the first three-wave structure developing to the downside.
As the price barely made a higher high last Thursday coming up spiking it looked like another increase would occur. This could still happen if the ascending structure is still the 4th wave’s correctional movement developing but as the price fell to the 2nd wave’s ending point it will more likely not happen.
The price is now expected to go down to some of the broken resistance levels on the way up, out of which the first significant zone would be around $6250.