BTC/USD technical analysis: more downside is expected for Bitcoin
|On January 1st the price of Bitcoin was $3,792 at it’s lowest point. The cryptocurrency increased by 7.19% and went up to $4,074.2 at its highest point yesterday. The BTC/USD pair is currently trading at $3,992 on FXOpen.
On the hourly chart, the price has entered the seller's market as Bitcoin came near the previous high vicinity. As the minor retracement began the price has fallen back to the minor horizontal support level where it is searching for support and it seems like the support is there, at least for now.
But as the momentum is clearly slowing down, more downside is expected for Bitcoin. Or at least some more sideways movement as the upward move might not be ended. We might see another increase towards the bold black line or the 5th impulse wave ending point at $4,267 before that expected downside continuation occurs.
As the price increased from $3,221 to $4,365 in one go (it's labeled as the 5 wave impulse), we are now likely seeing a correction labeled as the WXY. The correction waves ending points could be anywhere so it is hard to point out the target at the moment. But if we see a classic three wave correction after an impulsive move now, then this WXY correction is the second wave of a higher degree impulse. It is expected to retrace even up to 80% at times so the maximal target would be the horizontal resistance at $3,367.
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