Bitcoin (BTC) drops to new yearly low of $24,100

Bitcoin price has been falling rapidly since June 7, having generated seven daily bearish candles.

BTC has been in decline since its all-time high of $68,995 reached last November. In May, it broke below a long-term ascending parallel channel, confirming its downtrend.

Price initially bounced off the 0.618 Fibonacci retracement support level, but was rejected by the $30,000 horizontal area (red arrow), validating it as resistance.

If the downward move continues, the next support zone for BTC is at $22,000. This is the 0.382 Fibonacci retracement obtained when using a logarithmic Fib tool, as well as the resistance line of a former ascending parallel channel (red circle).

Due to these confluences, this area is likely to provide support for Bitcoin price.

BTC/USDT Chart – TradingView

Short-term price drop

The daily chart shows that price has been rising inside an ascending parallel channel pattern since May 12th. It peaked there at $31,589 on June 7.

Once at that high, it was rejected by a confluence of resistance: the $31,500 horizontal area, the middle of the relevant channel, and a descending resistance line in place since April.

Additionally, the daily RSI had generated a bullish divergence (green line) from the May 12 low. BTC’s move below the channel coincided with a drop below this trendline, another sign that the trend is bearish.

Fall over the day
BTC/USDT Chart – TradingView

Bitcoin Wave Count Analysis

The wave count suggests that BTC is in wave C of a corrective ABC pattern (in red). The subwave count is shown in black, suggesting that the price is in its fifth and final subwave.

Wave count analysis
BTC/USDT Chart – TradingView

The short-term count presents a target close to $22,000, which is printed using the length of the first sub-wave (in white) as well as an external retracement on the fourth sub-wave (in black). This also lines up with the weekly data readings.

BTC Short Term Count
BTC/USDT Chart – TradingView

As for the long-term count, it is likely that price is approaching the bottom of the fourth wave (in white) of a long-term bull run, which began in December 2018.

So, once the current decline is over, another upside move to a new all-time high could still take place.

A drop below the top of the first wave (red line) located at $13,880 would nullify this possible wave count.

BTC wave count
BTC/USDT Chart – TradingView


All information on our website is published in good faith and for general information purposes only. Any action taken by the reader based on information found on our website is entirely at their own risk.

Leave a Comment