Bitcoin price is preparing for the resumption of the bullish trend
CONTENT

  • Resistance and support are at $ 10,550 and $ 10,950

  • BTC is following the upward support line

  • The price is in the process of completing the W-X-Y correction

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The bitcoin (BTC) rate rolled back from the $ 10,950 level, but refrains from a significant drawdown. After a possible fall to the $ 10,550 area, the price may resume the bullish move.

Important resistance

Bitcoin has been rallying since September 23, when the price touched a low of $ 10,138. The rally continued until BTC hit the $ 10,959 mark, where the 0.786% Fibonacci retracement level is located relative to the previous decline..

At the same time, the fall after the rollback did not develop noticeably and was limited to a minimum of $ 10,683. Key support is located in the area of ​​$ 10,550, while important resistance levels are at $ 10,950 and $ 11,200..

BTC Chart by TradingView

On the 2-hour charts, it can be seen that the price is following the upward support line, the loss of which will send bitcoin to the mentioned $ 10,550 area.On the other hand, the quotes may also follow the downward resistance line (dashed line), the break of which will target the cryptocurrency to resistance around $ 11 200.

Technical indicators are relatively neutral, and therefore the further movement vector will determine a breakout in one direction or another in the context of the above-mentioned support and resistance levels..

BTC Chart by TradingView

Wave analysis

Wave analysis shows that on September 23, the price began to form an impulsive bullish wave structure (blue on the chart), completing the first wave on September 26.

Candlestick Engulfing Pattern Tutorial

Subwave analysis is shown in red in the chart below.

Bitcoin price is preparing for the resumption of the bullish trend

According to this analysis, the price is now in the process of completing the W-X-Y correction, which should end at $ 10,550..

Here, not only support passes, but also the 0.5% Fibonacci retracement level, and the length of the W sub-wave is projected onto the top of the X wave. The intersection of important levels speaks in favor of the completion of the current retracement here..

If growth resumes, the primary target will be $ 11,200.

BTC Chart by TradingView

So, Bitcoin with a high degree of probability will resume the bullish move, but at first the price may roll back to the $ 10,550 mark, followed by a reversal.

Bitcoin price is preparing for the resumption of the bullish trend

The previous analysis of bitcoin can be read here.

Disclaimer

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