Bitcoin price has been keeping a volatile state as of late with a large decrease to the upper $4000s before returning to a safe $5000 support line – lets take a look at some potential price action analysis.
The market has been mostly signalling in green with a 0.9% of change recorded in the 24 hour period from the 9th to 10th of April. The biggest names displaying a positive change include TrueChain, Crypto.com Chain, and VestChain with increases of 23.51%, 16.47%, and 14.02% respectively. The ABBC Coin though exhibited a massive decrease of 17.66% from 9 to 10 April.
Bitcoin price analysis
Bitcoin has been dominating the market at 50.8%. The cryptocurrency opened at $5317.3 recording a decrease of 2.64% coming down to $5177.1. It later recorded an increase up to $5293.9. The current market price is at $5276, displaying an upward trajectory.
An analysis of the 15 min chart displays a rising price indication for bitcoin to its significant horizontal resistance level of $5000. The market price seemed hopeful to surpass the resistance level twice after retracing measures by ABC, but it ended up creating a cluster between itself and the lower resistance line.
The ending of the first ABC presented an ascending channel with the price surge displaying corrective characteristics owing to the wave structure. The ascending channel still hasn’t been able to increase the market price above significant resistance.
On Monday, the ascending channel displaced itself from the rear side, but the market price still managed to hang on the lower resistance of the ascending channel of a higher degree.
There have been indications of a small breakout to the upside from the symmetrical triangle, but the market price still hasn’t reached up to the horizontal resistance level.
The price is still ranging in an upward trajectory, but analysts don’t seem hopeful as of yet. It is assumed that the price would be pushed down below its current level presumably below the 1.618 Fibonacci level.
The previous minor ascending channel has been depicted as a WXY correction, which would result in the present upside movement to be the final wave Z.
The downside movement now expected would be resulting in a third correctional structure, an ABC zigzag which would result in a higher degree three-wave correction along with the two correctional structures. This would result in the price of bitcoin to descend below $5000.
From the 4-hour chart, we can analyze that the 15th of December price surge resulted in the development of a three-wave structure. This structure is presumed to end on the third wave owing to its correctional nature.
Where will bitcoin’s price go next?
Bitcoin’s price in the market has had a reduced momentum. The significant levels have been signaling a near downfall in sight. The downfall would perhaps be a minor setback before a massive price surge would potentially reach around the $6200 mark. If that happens to be the case, the highest significant support level would be getting examined for resistance which is the horizontal support, the support from where bitcoin price dropped down with high momentum.
Analyzing the data from 2014, the three wave correction was in rise with the horizontal support level before the massive breakout in price resulting in a rejection. This rejection caused the market price to escalate further down low. The current market indications all center around the fact that the cryptocurrency could experience significant price downfalls below the present level before the onset of the end of the bear market. The only silver lining will be if it continues to increase past its $6200- $6500 level.
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