The price of Bitcoin has reached the projected target for the ending point of the 5th wave from the impulse which started on the 10th of June.
If the completion of this five-wave move is the completion of the ending wave of a higher degree this could be the end of the current bullish period for the price of Bitcoin and means some further downside in the upcoming period.
- Impulsive retracement of over 17% seen in the last 24 hours.
- Wave structure implies the completion of the 5th wave which means that a higher degree correction is now developing.
- The price maintained above 0.5 Fibonacci level but if this is only the first wave from the starting downtrend it won’t for much longer.
- The first significant support area to the downside would be between $9000-8500
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Bitcoin Analysis BTC/USD
From yesterday’s high at $1373 the price of Bitcoin fell by 17.17% today measured to its lowest spike at $11377, but the hourly candle closed above $11760 and managed to stay there and has found some temporary support.
As you can see from the hourly chart the price came up to the projected level of the 5th wave from the impulsive move which started on the 10th of June, after which a sharp downturn occurred.
The price spiked down to the 0.5 Fibonacci level but there wasn’t an interaction before recovery has been made which could indicate that the support is still around those levels but if we have seen the end of the higher degree 5th wave which is the lower degree five-wave impulse from the 10th of June, we are now likely the see a start of the higher degree correction.
Considering that the price of Bitcoin continuously rose from 8th of February without a major correction and in some instances in a parabolic manner, this growth is considered unsustainable and further over-extension would only contribute to the downward momentum which will follow.
This is why I would be expecting the price of Bitcoin significantly lower from the current levels from here for at least 30% which would bring the price of Bitcoin inside the area of the first significant support between the 0.382 Fibonacci level and the significant horizontal level at $8500.
If we have seen the end of the higher degree 5th wave, however, the price will continue to move further to the downside as we’ve seen the completion of the bullish period for the price of Bitcoin.