Bitcoin Bulls Falter as Price Action Suggests Wave C Decline

Bitcoin's recovery from its June lows appears to be losing steam according to Elliott wave patterns. The US dollar has seen a recent rebound, which contributed to a sell-off in stocks and cryptocurrencies.

This downturn affected Bitcoin, with the price decreasing since it rebounded from $61,800. Normally, this indicates that bulls are losing strength, typically occurring in wave C of an Elliott wave pattern.

Furthermore, overlapping price action within the current recovery suggests that bulls are losing momentum. However, there is still a possibility that Bitcoin may retest the resistance area around $67,000 or $68,000, which also represents the previous fourth wave of one lesser degree from June 15.

If this area is retested and then broken, it could lead to another sell-off later on. Once the decline starts, it could potentially reach at least $61,000, as liquidation levels around that area often act like a magnet, drawing prices towards them.