On May 30, the Bitcoin price reached a high of $9109.0. A rapid decrease began on the same day, which was followed by a gradual increase. On Jun 2, the price of BTC reached highs near $8800. A rapid decrease began on Jun 4.
On Jun 5 and 6, the Bitcoin price made lows near $7500.
Will the price continue to decrease or is there a reversal in store? Keep scrolling below in order to find out.
On Jun 5, the Bitcoin price reached the support line of the channel for the third time — before beginning an upward move. However, it failed to reach $8000.
After making a low, the price began another upward move on Jun 7. As mentioned in our previous analysis, we believe this upward move is part of the fourth wave according to the Elliott Wave Theory.
Will the Bitcoin price follow our outlined path? Let’s take a look at some technical indicators:
On Jun 3, a bearish cross occurred between the 100- and 200- period MAs. This is often an indicator that a downtrend has begun. A rapid decrease followed shortly after.
Since then, the Bitcoin price has been trading below both moving averages. At the time of writing, it was trying to move above the 100-period one. The 200-period MA coincides with the resistance line of the channel.
As stated in the previous section, we believe it is likely that the price reaches this area — but is a breakout likely?
An analysis of weekly candlesticks refutes the possibility of a breakout.
The BTC price is in the midst of creating an evening star pattern. It is a bearish reversal pattern which consists of three candles: A large bullish candlestick, a candlestick with a small body and a bearish engulfing candle.
The price is currently in the process of creating the third candle. A close below $7500 would validate this pattern.
The closest support area is found near $7200. If the price continues to decrease at the rate predicted by the channel, it is likely to reach this area on Jun 10, at the latest.
Do you think the Bitcoin price will reach the resistance line of the channel? Let us know in the comments below.
