Bitcoin Price Analysis: Elliott Wave theory projects a test of USD 6500 area
- Bitcoin seems to have it a brick wall and trades 2% lower on Monday.
- There is a new lower high that stopped on the 61.8% Fibonacci retracement.
BTC/USD 4-hour chart
Bitcoin has made a lower high on the 4-hour chart after rejecting the 55 EMA on the daily timeframe. Zooming in on the 4-hour now the lower high that was created and it stopped exactly on the 61.8% Fibonacci retracement. Now tracking the projections lower, the extension of 161.8% confluences with the 61.8% of the larger wave in blue. This makes the zone very strong and the probability of the target being tested is now higher.
On the 4-hour chart below the price has moved below the 55 period EMA but not the 200 SMA. The RSI is still in a depressed area under the 50 mid-line. Although this is the case, there is still space for a further move lower. It seems the bias has changed for now lets lookout for the test of the box marked in purple.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
