Exclusive Bitcoin (BTC) Breaks Down From Consolidation Pattern

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In Brief
  • Bitcoin has broken down from a symmetrical triangle.

  • BTC has long-term support at $27,000.

  • It's likely in the fifth and final wave of a bearish impulse.

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On June 7, Bitcoin (BTC) broke down from a symmetrical triangle that had been in place since May 19.

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It’s likely in the process of completing the fifth and final wave of a bearish impulse that could take it below $30,000.

BTC Breaks Down

BTC had been trading inside a symmetrical triangle since May 19. After consolidating for nearly a month, it finally broke down from the pattern on June 7. 

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So far, BTC has reached a low of $32,351. 

The closest support area is near $27,000, created by the 0.618 Fib retracement support level.

BTC Chart By TradingView

Wave Count

The wave count suggests that the drop is part of the fifth and final wave of a bearish impulse that began with the April 14 all-time high (orange). 

This is evident by the rejection from the previous support line of a descending parallel channel (red icon). 

The most likely area for the bottom of the movement is between $24,200 and $22,100. This range is found by using an external Fib retracement on wave four (black) and projecting the length of wave 1 (orange). 

While an extension could take BTC as low as $17,000, it’s still too early to determine if the current decrease will extend.

BTC Chart By TradingView

In the long term, the drop appears to be part of wave four (red) of a bullish impulse that began in December 2018.

The proposed decrease would complete a fourth wave pullback before another upward move that would complete the entire bullish cycle.

BTC Chart By TradingView

Future movement

In the two-hour chart, the sub-wave count is shown in black. It outlines a potential path for the BTC price.

An increase above the sub-wave two high at $36,811 (red line) would invalidate this wave count. 

Technical indicators do not yet show any signs of strength, supporting the possibility that BTC continues decreasing.

BTC Chart By TradingView

For BeInCrypto’s previous bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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