FX.co ★ Why BITCOIN sinks having touched $14,000? June 27, 2019

Bitcoin moved lower as expected. It is currently going back to the mean having reached $14,000 with impulsive pressure. Earlier, it managed to gain and sustain impulsive bullish momentum after breaching above $11,500 area with a daily close which came to an end after counter bearish pressure pushed the price by more than $2,000 lower with a single hourly candle.

Bitcoin has found itself on a firmly established bull market over the past several months, surging from its 2018 lows of $3,400 to highs last night of $13,000, which is only a stone's throw away from Bitcoin's previously established all-time-highs of roughly $20,000. It is believed that the overall crypto market is going to follow the Bitcoin's footprints. However, it was not quite the situation at the current market formation. Bitcoin's latest move upwards signals strong bullish momentum that the cryptocurrency regained after it moved above $10,000. The firm uptrend is likely to extend significantly in the near future.

Recent flash crash wiping off $2,000 and more in a single move aroused a question about the reliability of the bullish run. However, a wave retracement inside the overall bullish bias indicates further upward pressure. A daily volume hit an all-time high of $45 billion a few hours ago. So, a natural cooling off is expected. BTC market capitalization also peaked to $245 billion but $25 billion has left the digital asset since then.

From the technical viewpooint, Bitcoin is at the verge of completing the 5-wave cycle. The price is currently correcting at near $11,500. Bearish pressure is strongly impulsive while breaking below the Kumo cloud support. This price action indicates further downward pressure along the way. The Chikou Span is breaking below the price line while the price broke below $12,000. This indicates the bearish correction in the play which could lead to further corrective bearish momentum along the way. As the support area lies at $10,500 and $11,500, certain correction and growing volatility may be observed along the way before the price resumes a rapid rally with a target towards $15,000 in the coming days.

SUPPORT: 10,500, 11,500

RESISTANCE: 12,000, 13,000, 14,000

BIAS: BULLISH

MOMENTUM: VOLATILE