Bitcoin Price Analysis: Recovery Expected to Hit $11,300+
Over the weekend we have seen the recovery continuation but another retracement below the 0.236 Fib level where the price is currently being traded. As the level was broken on the quick spike another increase above it would be expected to the next one at $11308.
- Last Wednesday we’ve seen the completion of the WXY correction.
- The recovery that followed is most likely to develop in a five-wave manner which is why another increase would be expected from here.
- This recovery could be the sub-wave of the starting upward impulse or the upward correctional wave.
- After an interaction with the 0.382 Fib level and the first retracement, we are to reevaluate the possibilities.
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Bitcoin Analysis BTC/USD
The price of Bitcoin continued decreasing last week and came down to $9162 at its lowest point on Wednesday. Since the price came down to those levels we have seen a recovery to the upside starting to play out with the price initially retesting the 0 Fib level for resistance after which strong bullish momentum was caught for breakage of the FIb level.
As the next Fib level at $0.236 was retested on Thursday, the price made a minor retracement below it on the next day but continued increasing over the weekend managing to move slightly above it, reaching $10986 at its highest point on Saturday which was an increase of 20.13% measured from the weekly low at $9162.
Currently, the price is being traded at $10560 as it fell below the 0.236 level and is consolidating in a sideways range. On the hourly chart below you can see that the price of Bitcoin ended its three-wave correction of a higher degree with the Y wave’s ending point being a lower low compared to the ending point of the W wave.
The Y wave ended on the projected level which makes the likelihood of the WXY correction ending more probable.
The recovery we’ve seen after has been showing impulsiveness with the price managing to increase by 14% last Wednesday in one hour. This recovery is likely to end as a five-wave structure as it could either be the start of the next uptrend impulse wave or yet another corrective upside move if the WXY correction is to get prolonged by two more waves.
As we are most likely seeing another increase after this minor retracement for the 5th wave to develop, interaction with the 0.386 Fibonacci level would be expected which would bring the price of Bitcoin to $11308.
From the first lower degree correction after the currently seen five-wave move ends we are to reevaluate the possibility of both outline scenarios.
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Nikola Lazić, Khareem Sudlow