The price of Bitcoin continued increasing from yesterday but with slow momentum which is likely to end around $8500 where the next significant horizontal level is and would mark the completion of the rising wedge which has been formed from 10th of June.
- An interaction with $8500 level is expected.
- If we see a rejection at those level it would propel the price into a further downward trajectory with a lower low ahead.
- If the price continues moving to the upside a retest of the prior high could be seen.
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Bitcoin Price Analysis BTC/USD
From yesterday’s low at around $8100 the price of Bitcoin has continued moving to the upside by 2.76% as it came up to $8310 at its highest point today.
The price is currently being traded slightly lower as resistance has been encountered but is still in an upward trajectory.
Looking at the hourly chart you can see that the price of Bitcoin exceeded the first significant resistance point and continued moving to the upside with slow momentum, forming a rising wedge pattern.
This pattern is mostly considered bearish in this context as it indicates that the buyers are struggling to push the price into a recovery.
As the first significant resistance has been crossed an interaction with the next at $8500 would be awaited which will bring the price close to the apex of the mentioned rising wedge.
The interaction would be expected to end as a retest with rejection causing a shift in the trend and is likely the development of the C wave from the second correctional structure after the impulsive five-wave increase to the upside ended on Thursday 30th of May.
As the price is currently still on the rise but is showing smaller and smaller movement we are going to see the completion of the rising wedge pattern shortly and considering the vicinity and the significance behind the horizontal level at $8500 it is likely to end there.
If we are going to see a rejection at those levels the price is set to go below $7508 on the next downturn and is likely to end around the vicinity of the 0.236 Fibonacci level which is in price terms around $7056 or slightly lower at the next horizontal level below $7000.
This would be the formation of the third wave to the downside but if we are seeing the development of the higher degree downtrend which started on 30th of May we see it developing in a five-wave manner which would mean that the price of Bitcoin would continue moving to the downside further below $7000.