Bitcoin Elliott Wave Analysis: Potential Resistance AheadBitcoin's recent performance has been nothing short of impressive, with the cryptocurrency reaching a new All-Time High (ATH) of $73,777 over the past week. However, as it encounters a significant zone of supply between $66,401 and $69,000, the current price action suggests a formidable challenge ahead.
Despite multiple attempts, Bitcoin has struggled to breach this critical resistance level, indicating a potential weakness in buying momentum above this range. Notably, the formation of a potential pin bar further underscores the reluctance of buyers to drive the price beyond this resistance zone.
Adding to the complexity of the situation is the observation of volume dynamics. Throughout the uptrend, volume has remained relatively low. However, at this particular point of supply, volume has surged to its highest level, signaling heightened trading activity. This divergence in volume behavior could potentially indicate a shift in market sentiment and a looming reversal.
Furthermore, recent price movements have seen Bitcoin hovering above the 1.05 Fibonacci extension, potentially validating a B wave within an extended flat correction pattern. Such a scenario could pave the way for a subsequent C-wave, projecting a downward movement in price with a target around $11.7k.
Given these technical indicators, traders should closely monitor the ongoing battle between bulls and bears at this critical supply zone. A failure to decisively breach and sustain above this level may not only signal a halt in the current uptrend but also suggest the onset of a corrective phase in Bitcoin's price trajectory.
