The price of Bitcoin has started recovering from yesterday downfall and is forming a descending channel with the price currently showing resistance found.
If the price gets rejected at the present levels and goes below 0.382 Fib level we are to see further development of the descending channel before the next impulsive move to the downside starts but if the price finds support at 0.382 Fib level on a minor pullback and starts to break out from the still unconfirmed descending resistance, further recovery could be seen to the 0.618 Fib level at $12228.
- Price increases but is showing signs of the top, indicated by the wick on the previous candle.
- We are likely to see a rejection at the present levels as the price is approaching the vicinity of the prior high and the 0.5 Fib level.
- If the price finds support at 0.382 and starts breaking out from the unconfirmed descending resistance further increase could be seen.
- If the price starts moving below 0.382 on the expected retracement further downside would be expected with a potential continuation of the descending channel.
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Bitcoin Analysis BTC/USD
From yesterday’s low at $11130 the price of Bitcoin has recovered by 4.72% as it came up to $11655.5 at its highest point today, around which it is currently being traded.
On the 15 min chart, you can see that the price of Bitcoin came above the 0.382 Fibonacci level but hasn’t made an interaction with the 0.5 one before showing signs of weakness.
A descending channel started forming but its upper level is still unconfirmed as we are yet to see if the price pulls back as it finds resistance which I think it will.
This descending channel could play out as the B wave correction to the upside but with lower highs and lower lows in which case a breakout above 0.5 won’t be seen before another downfall as the C wave should start.
Another possibility would be that we see a similar pattern as we did on the X wave in which case the price would find support on a minor pullback and retest the 0.382 Fib level for support and continue increasing from there to the 0.618 Fib level at $12254.
In either way, the recovery seen from yesterday is considered as the B wave from the ABC correction as the 3rd sub-wave from the higher degree correctional count and is why after its completion I would be expecting another downfall.
The price is set to go below 0.268 Fib level as the C wave develops and the ending point of the first ABC correction after the 5th wave out of the Minor count ended might get retested, which is why I’ve projected my target price for the C wave to be at around $9930, but we could see the price lower if the price is to make a lower low compared to the first correction C wave in which case I wouldn’t expect it to go below $9440.
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