In this article, we will discuss the current state of Bitcoin’s price action, potential future scenarios, and key price levels. We will also provide technical analysis for Bitcoin on the one-hour and daily time frames.
Current State of Bitcoin’s Price Action
Bitcoin is currently in a bearish position within a five-wave pattern. This pattern is a common pattern in technical analysis that often leads to a significant decline in price. However, there is a potential bullish scenario that could invalidate the bearish structure. This scenario involves Bitcoin breaking above $26,207. If Bitcoin is able to break above this level, it could signal a reversal in the trend and lead to a rally.
Potential Future Scenarios
If the bearish trend continues, the target range is between $25,474 and $25,586. This range is the Fibonacci retracement level of 61.8% from the previous rally. If Bitcoin breaks below this range, it could signal a deeper decline in price.
On the other hand, if the bullish scenario plays out, Bitcoin could rally to $28,000. This level is the Fibonacci extension level of 161.8% from the previous rally.
Key Price Levels
The following are some of the key price levels to watch for in the near future:
- $26,207: This is the level that Bitcoin needs to break above in order to invalidate the bearish structure.
- $25,474 – $25,586: This is the Fibonacci retracement level of 61.8% from the previous rally.
- $24,689: This is the 200-day moving average. A close below this level would signal a deeper decline in price.
- $28,000: This is the Fibonacci extension level of 161.8% from the previous rally.
Conclusion
The current state of Bitcoin’s price action is bearish, but there is a potential bullish scenario that could invalidate the bearish structure. The key price levels to watch for in the near future are $26,207, $25,474 – $25,586, and $24,689.
