On April 2, 2019, the Bitcoin price began a rapid upward move that caused a breakout above the resistance line at $4200.
This movement occurred with significant volume.
It is likely that the aforementioned movement was the first wave of a five wave Elliot formation.
Furthermore, we could now be in the fifth wave, which has become parabolic.
SponsoredWhere will the top be? Keep reading below and find out.
Bitcoin Price: Trends And Highlights For June 26
- BTC/USD is potentially in the final wave of a five wave Elliott Formation.
- It is approaching the 0.618 fib level of the downward move beginning in 2017.
- It is also approaching the end of a fractal from April.
- It recently broke out of a short-term ascending channel.
Fibonacci Retracement
The price of BTC is analyzed at daily intervals from Nov 2018 to June 2019.
In order to predict the top of this wave, we used the Fibonacci retracement tool in two downward moves.
- From the $20,000 high in Dec 2017 to the $3200 low in Dec 2017.
- From the $9100 high in May 2019 to the $7200 low in June 2019.
In our previous analysis, we stated an initial target of $11,700 (0.5 fib level) for the fifth wave. The BTC price broke through it without difficulty.
The next target is at $13,700. It was found by the 0.618 fib level of the first downward move. Furthermore, this coincides with the 4.13 fib level of the shorter, second downward move.
A breakout above this level would likely take the price to the 0.786 level at $16,500.
At the current time, we will not try to predict whether the Bitcoin price will get there.
Instead, we should see if the price begins to show weakness at the $13,700 level, in the form of bearish divergence or the creation of reversal patterns.
Fractal
In our previous analysis, we stated several similarities between two upward moves in April and May respectively.
We stated that :
First, the RSI created a bearish divergence in overbought territory. The level of divergence followed a descending line.
The price touched the ascending support line and the RSI broke the trend shortly after.
Afterward, the rate of increase intensified. The price retraced slightly in order to create a new support line.
The third step is a series of upward moves, after which the price created the original support line,
We are currently in the third step, which is a series of upward moves. The new support line has yet to be created.
Interestingly, during the upward move in May, the BTC price increased by 80 percent — measuring from the final time it touched the support line.
SponsoredAn identical rate of increase would take the price to $13,700, which is the same target given by the Fibonacci retracement tool.
Bitcoin Price: Short-Term
The price of BTC is analyzed at one-hour intervals alongside volume.
Prices have been trading inside the ascending channel outlined below since June 22.
On June 22, the BTC price broke out from the channel and has been increasing since.
It reached values close to $13,000 before creating a bearish doji with very significant volume.
The succeeding candle was bullish but failed to close above the height of the doji.
Sponsored SponsoredWhile this is a sign of weakness, it is only occurring in short-term time-frames, and we do not believe it is sufficient in stopping the price from reaching our target.
Summary
The price of Bitcoin has been increasing rapidly since the beginning of April.
It is potentially in the final wave of a five-wave Elliot formation.
The closest target for a top is currently at $13,700.
Where do you think the price of BTC will begin to reverse? Let us know in the comments below.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images are courtesy of Shutterstock, TradingView.
