Technical Analysis BTCUSD 05/06/2018


The cryptocurrency price is expected to continue its downtrend

According to chart H4, a Head and Shoulder pattern was formed within the Bitcoin price chart. Although the cryptocurrency price had broken above the neckline for a while, the Bitcoin price turned back and fell significantly. We anticipate that the Bitcoin price will continue its current downtrend to re-test the support line around the Shoulder pattern before a recovery to the neckline and further.

In chart M15, the cryptocurrency price is moving within the Elliott Corrective Waves. We anticipate that the cryptocurrency price will break the upper trend line around $7598 in order to form the Elliott Impulsive Wave (B), then the bearish mood will soon come and take over the market. Thus, a tick-down to the resistance line will be shaped so as to accomplish the Elliott Declining Wave (C). And after that, the cryptocurrency price is expected to start a new Elliott Wave.

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