Bitcoin will soon complete correction and resume its rise
CONTENT

  • Bitcoin rate bounced off the support of $ 10 115

  • The technical picture on the short-term charts is gradually improving.

  • BTC may show another decline before its growth resumes

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Bitcoin (BTC) has been declining since pullback from local highs on September 19 and seems to be completing the downside movement before resuming growth.

BTC is approaching support

Bitcoin has been depreciating since September 19, when quotes touched a high of $ 11,183.

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During the decline, the first cryptocurrency formed two bearish engulfing candles and is trading near the psychological $ 10,000 mark, which at the beginning of the month resulted in the appearance of several long lower wicks, which indicates the presence of pressure from outside buyers.

Technical indicators paint a neutral picture with a bullish bias. There are prerequisites on the charts for a bullish crossover of the Stochastic Oscillator, the confirmation of which will serve as a strong positive signal.

BTC Chart by TradingView

On short-term timeframes, you can see that the price bounced off the $ 10 120 mark, where the 0.786% Fibonacci retracement level is located. In addition, MACD gives signals of bullish divergence and moves smoothly in the direction of positive territory..

At the same time, no divergence is observed on the charts starting from the 6-hour signal..

BTC Chart by TradingView

Bitcoin will soon complete correction and resume its rise

Wave analysis

BTC likely started forming an impulsive bearish pattern after hitting the aforementioned high on September 19 (highlighted in blue in the chart below).

If so, then yesterday, September 23, the cryptocurrency formed the top of the fourth wave.

It looks like BTC will complete another short-term move for two reasons:

  • Within the framework of the fifth wave, we cannot yet distinguish five sub-waves (red)
  • When the length of wave 1 is projected to wave 4, a minimum is revealed in the region of $ 10 110.

In the event of another short-term decline, Bitcoin will confirm the 0.786% Fibonacci retracement level, followed by a resumption of the bullish move.

Bitcoin will soon complete correction and resume its rise

BTC Chart by TradingView

So, Bitcoin could show another wave of decline to lows around $ 10,100 before resuming its upward movement..

The previous analysis of bitcoin can be read here.

 

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