The price of Bitcoin (BTC) has been gradually increasing since June 22, 2019. The rate of increase intensified on June 26, reaching a high of $13,764. A rapid decrease ensued, and the price made lows below $12,000 during the same day.

Is this the beginning of a reversal for BTC?

Keep reading below and find out.

Bitcoin Price: Trends and Highlights for June 27

The Bitcoin price is potentially in the final wave of a five-wave Elliot formation.

It initiated a rapid decrease on June 26.

The decrease occurred with significant volume.

Volume was higher during bearish candles.

Bitcoin Price: Elliott Wave

The price of BTC/USD is analyzed at daily intervals.

In yesterday’s analysis, we stated that we believe that the price is likely in the final wave of a five-wave Elliott formation.

Our initial target for the top was $13,700, followed by $16,500.

On June 26, the daily candlestick reached a high of $13,764 before decreasing. It closed with a long upper wick. This indicates that there is selling pressure in the market.

It somewhat resembles a shooting star, which is a bearish reversal candlestick — but its body is larger than the wick.

On the right hand side, we can see that while the drop below $12,000 was rapid, the price immediately pushed back to $12,800.

Furthermore, we still have not had a close below $12,600, which was the lowest price of the last bullish candle.

It looks likely that the current 6-hour candle will close below it. Other levels to watch are $11,800 and $13,300.

A close below these values respectively could serve as a confirmation that a downtrend has begun, while a close above would likely invalidate the possibility of a reversal.

Short-Term Bitcoin Price Outlook

The price of BTC is analyzed alongside volume at hourly intervals (First graph) and 15-minute intervals (Second graph)

The Bitcoin price has been following an ascending support line since June 22.

The increase on June 26 took the price significantly above this support line.

We can see that the ensuing decrease occurred with significant volume.

However, both hourly bearish candles had very long lower wicks, indicating that there is significant buying pressure.

A closer look, however, gives a bearish outlook.

A look at the 15-minute chart shows that the volume was highest during the decrease, and consistently decreased during the ensuing upward move.

Fractal

In yesterday’s analysis we stated that:

Interestingly, during the upward move in May, the BTC price increased by 80 percent — measuring from the final time it touched the support line. An identical rate of increase would take the price to $13,700, which is the same target given by the Fibonacci retracement tool.

Yesterday’s movement supported this possibility. The Bitcoin price reached a high of $13,764 before beginning to decrease.

This top was also combined with a high RSI value of over 80, similar to the previous time this move occurred.

If the price continues to follow this fractal, a period of consolidation following an ascending support line should follow.

Summary

The Bitcoin price made a high of $13,764 before losing almost $2000 in value in a span of one hour.

The decrease occurred with significant volume.

If the price continues to follow the fractal from April, a period of consolidation should ensue.

It is still too early to make a confident prediction on whether a reversal will ensue or if this was just a temporary correction.

As the market continues to give more signs, we will update the analysis as necessary.

Do you think the price of BTC will initiate a reversal? Let us know in the comments below.

Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.

Images are courtesy of Shutterstock, TradingView.