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Bitcoin Price Prediction: $3600 on the Horizon?

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From yesterday’s high at around $140,5B the evaluation of the cryptocurrency market cap has been declining and came down by around 4,045 billion dollars to today’s low at $136,445,180,031.

Bitcoin Price BTC

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Looking at the global chart, you can see that the evaluation fell below the minor horizontal support level on an impulsive move to the downside and has made a corrective wave structure making a lower low today to the mentioned level from where another increase was made.

As the evaluation is in an upward trajectory this could be an early indication of the start of the corrective move to the upside which could retest the minor horizontal support level for resistance if we are to see further trend continuation to the downside. But until the evaluation reaches higher levels than the prior high we can’t say that the down-move ended.

The market is mostly in red today with an average percentage of change among top 100 coins in the last 24 hours ranging around 1.2-2.8%. The biggest movers are in red as well and are in double digits, like Repo with a decrease of 25% and DigiByte with a decrease of over 12%.

Bitcoin’s market dominance has been hovering around the same levels as yesterday but has come slightly higher than yesterday when it was sitting around 50.68% at its lowest point as it is currently being evaluation around 50.9%.

Bitcoin BTC/USD

From yesterday’s high at $4050, measured to the lowest price has been today which was at $3939.6, we have seen a decrease of 2.74%. Since then the price has recovered slightly and is currently sitting at $3986.8.

On the hourly chart, you can see that the price of Bitcoin broke down below the ascending trendline which was the minor trendline from 4th of March and retested it from the downside for resistance last Saturday which cause the price to start moving in a downward trajectory once more.

As the price continued its downward trajectory over the weekend, yesterday we saw another impulsive decrease down to the next ascending trendline intersection with the 0.618 Fibonacci level at $3936 which serves as a support point.

Now that the price found some temporary support there, it has started moving to the upside and is around the levels of the minor horizontal resistance from the current range below the significant horizontal resistance at $3994.4 which was as well broken on the yesterday’s downfall.

We are currently seeing a cluster being formed around this significant support/resistance point which is why we are seeing the price struggling to make a decisive move just yet. As we have previously seen the end of the ABC correction to the upside the move to the downside was expected which has most likely started yesterday.

If this is true then we are seeing the development of the first wave of a higher degree count either from the third corrective structure or the start of the 3rd impulse wave which is why I believe that after this currently seen cluster retest the broken resistance a decisive move to the downside would occur.

If the price of Bitcoin ended its Intermediate correction a trend continuation would be expected but I think that’s more likely that the Intermediate correction got prolonged in which case this decrease would be the second wave X and that another increase after that would be expected as the Z wave should develop after the expected trend continuation to the downside.

This will be seen from the depth and the momentum behind the down-move which started yesterday but since more downside would be expected from here the price of Bitcoin is likeley now heading towards $3666 level for a retest of its lower ascending trendline formed by the Intermediate correction.

Market sentiment

Bitcoin is in the buy zone.

Pivot points

S3 3785.6
S2 3928.5
S1 3995.8
P 4071.4
R1 4138.7
R2 4214.3
R3 4357.2

Conclusion

As the cryptocurrency market experienced another decrease in the last 24 hours this validated the projection in which a downtrend was expected.

Now that we are most likely seeing the expected retracement the price of Bitcoin is likely heading towards $3666 area when the next significant support point is, but if we are seeing the start of the trend continuation the price of Bitcoin could fall lower.

This will soon be seen from the momentum behind the move, but I don’t believe that the price of Bitcoin is currently heading lower than $3666 as I think that we are seeing the prolongation of the correction which started in December last year.

In that case the price of Bitcoin could experience another increase to the upper point of the resistance zone around $4300 or even slightly exceeding it before new lower lows.

The post Bitcoin Price Prediction: $3600 on the Horizon? appeared first on Blockonomi.

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