Bitcoin Price Analysis: BTC Starts to Recover, Looking to Head Back over $11k

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The price of Bitcoin started recovering from yesterday and managed to pull back up above 0.236 Fibonacci level which is currently being retested for support. A trend continuation or a downfall is equally likely.

  • If the price finds support here and continues increasing from here interaction with the 0.382 Fib level at $11,308 would be expected.
  • If the price doesn’t find support and goes below the 0.236 Fib level but manages to stay above $10348 there would still be a possibility for a higher high to the 0.382 level.
  • But if the price goes below $10348 a trend continuation of the higher degree would look likely with the price headed for a lower low – below $9931

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Bitcoin Analysis BTC/USD

From yesterday’s low at $9931 the price of Bitcoin increased by 10% as it came up to $10932.2 at its highest point today. The price is currently being traded slightly lower at $10676 as a minor pullback occurred.

On the hourly chart, you can see that the price came above the 0.236 Fib level on today’s high and is currently retesting it for support on the retracement. The price is slightly below the Fib level but we can’t say that a breakout started as the price managed to stay around the level for eight hours.

Today’s high was followed by wicks from the upper side which indicates that the price has entered the seller’s territory but we have seen a wick from the lower side on the hourly candle below the 0.236 Fib level which indicated buyers presence.

As the price is stuck in a consolidative range after an increase we could see a breakout from both sides. The price could find support here and continue moving to the upside for interaction with the next Fib level at $11308.1 or the seller’s pressure might be proven stronger in which case a drop below 0.236 level would occur.

We have seen the completion of the three-wave move to the downside yesterday which was most likely the third ABC correction out of the higher degree WXY.

The recovery which followed could either be the start of the next impulse wave to the upside if the correction ended or could be the 4th corrective wave after another 5th one to the downside occurs in which case the downfall seen from the 10th of July when the price of Bitcoin was $13100 would be a five-wave move instead of the now labeled ABC.

If the price doesn’t exceed the 0.382 Fibonacci level on the current rise and rejection there causes a downfall below the 0.236 Fibonacci level, a lower low and the 5th wave scenario would look likely.

But if the price manages to increase to the 0.5 Fib level at $11,768.1 the start of another upside move would look more likely.

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