The price of Bitcoin impulsively started decreasing from yesterday’ interaction with the 0.618 Fibonacci level which ended as a rejection. The price fell by over 20% indicating strong seller’s pressure. Small recovery has been made but it is likely a corrective recovery which is set to end shortly as another downturn should start soon.
- Interaction with the 0.618 Fibonacci level ended as a rejection.
- The price is set to go significantly lower if we are seeing the starting downtrend of a higher degree.
- The first support area on the way down would be at $8500.
Bitcoin Analysis BTC/USD
From yesterday’s high at $13212 the price of Bitcoin decreased by 21.23% as it came down to $10407 at its lowest point today. Yesterday’s high was an interaction with the significant 0.618 Fibonacci level which ended as a rejection and caused the price to start moving to the downside in an impulsive manner.
Looking at the hourly chart you can see that the price came below the 0.5 Fibonacci level and stopped out at the minor ascending trendline from the from 10th of June from when the last five-wave impulse started developing.
As the price found support there an immediate recovery has started which managed to pull the price back above the 0.5 Fib level and is currently being traded at $118816, slightly below today’s high at $12012.
The price recovered by over 14% today measured to the lowest spike to the highest point today but it appears that strong resistance has been encountered as indicated by the last hourly candle. This recovery appears to be correctional and is most likely the 2nd wave out of the starting downtrend.
I wouldn’t expect it to go above $12451 which would be a 0.618 Fib from the impulsive decrease if the corrective movement is in play.
We’ve seen the completion of the five-wave impulse from 10th of June which could have been the 5th wave from the higher degree count which I believe that it was.
If this is true, then we are going to see further downside for the price of Bitcoin in the upcoming period as a correction of the same degree should develop.
On the hourly chart, you can see that I’ve projected a target to around $6914 but the price of Bitcoin could go significantly lower as it would be only the first wave to the downside.
The five-wave move might not develop and we could instead see a three-wave correction to $8500 before further upside continuation but considering the seller’s momentum seen from yesterday I don’t believe that Bitcoin’s price is going to continue increasing further.