The price of Bitcoin continued decreasing from yesterday in an impulsive manner and has broken the minor ascending channel support. As there aren’t any signs of another recovery starting soon and we are seeing the development of the third wave, more downside would be expected in the upcoming period.
- A breakout below minor support point was made.
- The price is currently testing the first wave’s ending point level for resistance.
- Further downside would be expected as we are most likely seeing the development of the five-wave impulse to the downside.
Bitcoin Analysis BTC/USD
Last week the price of Bitcoin started failing impulsively after reaching $13714 at its highest point on Wednesday.
The price decreased by over 24% on the next day as it came down to $10400 at its lowest spiked by the hourly candle closed above $10772 after which recovery took place.
From Friday’s open at $10817 we have seen a recovery of 14.12% on Saturday as the price came up slightly below the 0.618 Fibonacci level which is in price terms at $12342.
On the next day, another attempt has been made for the price to surpass the 0.618 Fib level but the price action formed a lower high which was an early sign of weakness with the price immediately starting to move impulsively to the downside again as the third wave out of the starting downtrend has begun.
As you can see from the hourly chart, the price of Bitcoin fell to the starting point of the weekend’s recovery and was found support around the ascending channel made from 10th of June but as the sellers have been applying pressure the support broke with the price now being below it as it fell to $9774 on its lowest point.
Currently, the price is being traded at $10292 as it has been testing the 0 Fib level for resistance.
With the price retesting the broken support for resistance and has made a downfall of 20.36% from Saturday’s high till today’s low are most likely seeing some correctional movement before further downtrend continuation as we are seeing the development of the third wave after the five-wave impulse wave to the upside ended last Wednesday.
This third wave could be the one out of the five-wave move to the downside which could be the first sub-wave of the higher degree correction.
Another possibility would be that impulsive decrease would end on the third wave as it could be an ABC correction as a sub-wave of a more complex correctional structure.
But in either way, I would be expecting further downside for the price of Bitcoin to some of the broken resistance points on the way up out of which the first significant one would be at around $8500 area.