BTC Price has recovered by over 10% from Friday but has been stopped out at the projected resistance point coming to the prior high and retesting the area for resistance. If we see a breakout to the upside the price is likely to continue increasing until reaching the yearly high or slightly below to the 0.618 Fib level.
- The recovery is seen over the weekend with the bullish momentum increasing today.
- The price has reached a significant resistance point at the intersection of the upper ascending trendline and the prior high’s horizontal level.
- If the price starts immediately decreasing the projected scenario would still be in play as this recovery could be considered as the 2nd wave from the starting five-wave decrease.
- But if we see further upside movements above the significant area the increase is likely to continue.
Over the weekend the price of Bitcoin has been recovering and came up from $10837 at its lowest point on Friday to $12000 at its highest point today which is an increase of 10.78%.
The price is currently being traded slightly below the levels of today’s high and is in an upward trajectory with the last couple of hourly candles indicating bullishness.
On the hourly chart, you can see that the price came up to the upper ascending trendline which is was the support level made from the 10th of June and was considered the be the support trendline from the previous increase.
As the price came down below it last week on Monday it was broken again to the upside on the way up but the upward momentum has been stopped out at the minor horizontal level at around $12000 forming a lower high.
The price is back around those levels again and is currently retesting the area for resistance. Considering that the minor horizontal level is intersecting the ascending one at the current point the area serves as significant resistance.
This increase as a retest of the upper ascending trendline was expected and was pointed out in my last Bitcoin price analysis as the 2nd wave from the starting downward impulse so if we see an immediate rejection this projection will still be in play.
But if the price exceeds the current resistance area and managed to close above on the hourly candles another rise to the yearly high at $13740 could be seen.
Even though the projection is going in accordance I think that we are more likely to see further increase than an immediate rejection but the increase would still be considered to be corrective in nature and most likely the 2nd wave out of the higher degree three-wave move out of which the first wave would be the lower degree three-wave move from the yearly high till July 2nd’s low.