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Bitcoin [BTC] Price Prediction: Attempting a Breakout?

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The evaluation of the cryptocurrency market has increased over the weekend by around 6,751 billion dollars coming from $141,532,000,000 to $148,283,000,000 at its highest point on Saturday high but the increase ended only a quick spike as the evaluation immediately came back to to the same level from which the increase was made.

Bitcoin Price BTC

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On the global chart, we can see that the evaluation came up to retest the resistance level from the ascending triangle which was formed by the current structure from back in November last year so now as it came again to its level after the Saturday’s spike we are seeing today another interaction but on a steady increase is a sign of uncertain momentum and is most likely going to ends as a rejection, setting of the market for a bearish period.

The market is in mixed colors today with an insignificant percentage of change, as its ranging from 0.2-08% on average. The majority of the biggest movers are in green with an increase of around 7% although there are those in double digits like ABBC coin which experienced an increase of over 17% today followed by Enigma with an increase of over 13%.

Bitcoin’s market dominance is currently sitting around 50.1%  slightly lower than on Friday when it was 50.23%.

Bitcoin BTC/USD

The price of Bitcoin has continued moving to the upside over the weekend and has come up to the ascending triangle’s resistance line where it found significant resistance and was rejected but this hasn’t triggered a move to the downside as another attempt is currently being made for the price to breakout to the upside.

The price of Bitcoin was sitting around $4085 on Friday’s low close to the open and from there increased by around 3% coming to $4203 but came down to $4146 afterward from where another attempt has been made and the price is currently putting pressure on the mentioned resistance level.

On the hourly chart, you can see that the buyers haven’t given up just yet but the sellers are clearly defending the level which is why now are seeing the signs of struggle from both sides, as indicated by the wick on the last hourly candles and as the price is again retesting the significant resistance level on another attempt we are most likely going to see a rejection and the start of a move to the downside, especially taking into consideration that we have seen a minor five-wave move to the upside which clearly ended on Saturday.

Today’s attempt for a breakout is most likely corrective as the price of Bitcoin came down to the 0.786 Fibonacci level where it found support, so the buying was activated. Considering the momentum isn’t there for a breakout to the upside from the strong resistance level which was well respected in the past a rejection looks more likely which is why I think that the start of the downtrend is now imminent.

Zooming out on to the 4-hour chart you can see the significance behind the current resistance level as it was clearly respected in the past but unlike the prior two times when the interaction took place on a quick spike after which an even quicker move to the downside occurred, the price has now come slowly and is taking its time retesting the level which could indicate a different scenario.

Although we might see a breakout to the upside it would be needing a stronger momentum then currently shown, a rejection looks more likely. Prior to the upswing that started on last Monday, March 25th could be the fifth wave of a five-wave correction which is currently labeled as a three-wave ABC to the upside.

If we look at the structure after the Intermediate W wave ended we can see the resemblance which is why I would be expecting a similar scenario but the price has started behaving differently over the weekend so a breakout to the upside could occur.

If the price, however, continues increasing, I would be looking at the significant horizontal level at around $4374 for an interaction.

Market sentiment 

Bitcoin’s hourly market technicals are signaling a strong buy.

Pivot points

S3 3562.7
S2 3833.7
S1 3999.4
P 4104.7
R1 4270.4
R2 4375.7
R3 4646.7

Conclusion

The price of Bitcoin has experienced an increase of the weekend but nothing has been changed for the price projection as the price is still showing corrective momentum and is above the significant resistance levels.

Today another attempt is being made for a breakout to the upside which I think is going to end as a rejection which would set the price for the expected downside move.

The increase might continue past the current significant resistance point which is the resistance line of the ascending triangle but If the increase continues I won’t be expecting the price to go up for more then $100 as the next significant resitance point is around $4300.

A retest of the upper resistance could be just what the price needs for the expected downtrend to start as the quick spike to it could potentially trigger passive sellers which would be then chasing the price to the downside pushing it below the mentioned resistance levels and all the way down to around $3600 area which is where the optimal target would be for the ending point of the expected retracement.

The post Bitcoin [BTC] Price Prediction: Attempting a Breakout? appeared first on Blockonomi.

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