The price of Bitcoin has continued increasing past the highly significant pivot point which is the 0.382 Fibonacci level. The momentum looks sustainable which is why I don’t believe that we could see a fakeout so further upward movement would be expected.
- Breakout to the upside could be viewed as the strongest confirmation of the bull market but the price needs to hold above the Fibonacci level.
- As further upside movement would be expected the price could go to $11307 which is the next Fibonacci level at 0.5
- If we see an immediate sharp downfall it would mean that a fakeout occurred.
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Bitcoin Price Analysis BTC/USD
From Monday’s open at around $9080 the price of Bitcoin has increased by 8.02% as it came up to $9807 at its highest point today which is also the highest price has been since the start of the year.
The increase seen isn’t significant by its amount but the price managed to break out to the upside above the highly significant Fibonacci level at 0.382.
On the hourly chart, you can see that the price has interacted with the Fib level on two occasions but the price held above $8963.5 after which another attempt has been made yesterday and after a small retracement the price continued increasing past the significant level.
Price action is indicating sustainable momentum as we haven’t seen the breakout developing fast and spiky, but rather we’ve seen a slow rise with the multiple hourly candles and minor retracements.
This most likely means that the 5th wave to the upside hasn’t ended and that the previous structure is the 4th wave out of the higher degree impulse from 15th of December and is, in that case, the starting wave of the bull market.
This would shortly be confirmed by the price action as if we are seeing the 5th wave developing further upside movement would be expected with a potential retest of the broken Fib level as the price is to establish some support. If we are seeing the uptrend continuation the price would likely be headed towards the next Fibonacci level at 0.5 which is in price terms at $11307.
Another possibility could be that an immediate downfall below the Fibonacci level would occur as the price has entered the seller’s territory, but the momentum looks sustainable which is why I don’t believe that’s likely to occur.