The price of Bitcoin has been moving sideways from yesterday but it has now started to move to the downside. This downside movement could be another five-wave move like we’ve seen from last Thursday which would mean that the structure formed from there is an ABC of a higher degree count in which case another move to the upside would be expected.
The other possibility would be that the downside move could only be a minor one as the increase seen over the weekend is the expected upside move in which case the price cannot go below $7450.
- A breakout started but it is still unconfirmed
- The price needs to hold above $7450 if we are seeing an impulsive upward move.
- If the price goes below it the increase seen from Friday was a three-wave correction.
Read: VantageFX Review
Bitcoin Analysis BTC/USD
From yesterday’s open at $8020 the price of Bitcoin has been moving sideways, hovering around the level but was mostly holding above $7893 until now when the price started moving below it with it currently being traded at $7802.
Looking at the hourly chart, we can see that in the last hour, the price of Bitcoin spiked down to $7757.1 level as the opening of the candle was on the horizontal support level.
As the hourly candle still hasn’t closed we still can say that a breakout occurred but it definitely looks like it has started. This horizontal level is only a minor one and isn’t all that significant, but this breakout could be an early indication of the expected downside move to some of the support levels out of which the closest one would be at the ascending trendline from 11th of May.
It is still unclear whether or not the increase seen from last Friday and continued over the weekend was correctional or impulsive. This would be verified soon as the price is starting to move to the downside and if it goes below $7450 level it would mean that the increase was correctional as the price would enter the territory of the now labeled B wave which if impulsive would be the 2nd out of the five-wave increase.
If the price holds above the level and starts moving to the upside again a more likely scenario would be that the increase seen over the weekend is another five-wave impulse wave which is set to push the price for a breakout from the descending trendline and higher then the last Thursday’s high at $8300.
The post Bitcoin Price Analysis: A Breakout to the Downside Likely Started appeared first on Blockonomi.