The Bitcoin (BTC) price reached a high above $11,100, purportedly breaking out from the current pattern, but was rejected by an important Fib level and has been decreasing since.
Bitcoin Rejected At ResistanceTechnical indicators have begun to move upwards, but have not confirmed a reversal yet. While the MACD and RSI are increasing, the latter is possibly facing resistance at the 50-line. In addition, the Stochastic Oscillator has begun to move upwards but has not made a bullish cross yet. If the price were to reclaim the $11,1200 level, it would be a strong confirmation sign for the upward trend, especially if the aforementioned technical indicators turn bullish.
Deviation Above ResistanceThe shorter-term chart shows that the price is trading inside a parallel ascending channel. Movement contained within parallel lines is more often than not corrective. On Sept 16, the aforementioned high caused a deviation above the resistance line of the channel, which was immediately followed by a decrease back below it. There is a bearish divergence in the 2-hour RSI, and the MACD has begun to decrease. The support line of the channel is currently near $10,600. There are two main support levels where the price might retrace to. If the entire move is not complete, we would expect a minor correction between the 0.5-0.618 Fib levels at $10,550-$10,660. This would be almost right at the support line of the channel, indicating that the correction is minor and the upward move will continue. If the entire move is complete, then a deeper retracement will likely follow, In this case, the $10,312-$10,436 level would be more likely to initiate a reversal. If neither of the levels manages to initiate a bounce, the price is likely to continue heading to test the range lows. BTC Chart By TradingView
Wave CountsThere are two possible wave counts for what is currently transpiring:
- The price is still in wave 4,
- BTC completed wave five and has begun a new bullish impulse.
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.