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Bitcoin (BTC) Rebounds Above Short-Term Support At $41,000

2 mins
Updated by Kyle Baird
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In Brief

  • Bitcoin is trading above an ascending support line.
  • BTC has reclaimed the $41,250 area.
  • The wave count suggests a short-term drop will occur.
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The Bitcoin (BTC) price increase that has been ongoing since April 18 stalled on April 20 as it hit a wall and was rejected by the 0.382 Fib retracement resistance level.

Bitcoin has been increasing above an ascending support line since Jan. 24. The line has been validated numerous times, most recently on April 18 (highlighted), when the price created a bullish engulfing candlestick.

The increase led to a local high of $42,199 on April 20, when BTC was rejected. The rejection occurred right at the 0.382 Fib retracement resistance level.

If the upward movement were to continue, there would likely be strong resistance at $44,550 which is the 0.618 Fib retracement resistance level. This area also coincides with a descending resistance line (dashed).

Short-term BTC reclaim

The six-hour chart shows that prior to the upward move, the RSI generated a considerable bullish divergence (green line).

BTC followed this up by reclaiming the $41,250 horizontal area that had previously acted as resistance (red icon) and has now seemingly turned to support (green icon). 

The short-term trend can be considered bullish as long as BTC is trading above it.

Wave count analysis

There are two main possibilities for the wave count.

The first suggests that BTC has just completed sub-wave four (yellow), and will now decrease toward $37,000. This would give the longer-term waves A and C an exact 1:1 ratio and validate the support line of an ascending parallel channel. 

The second possibility suggests that BTC has completed a five-wave downward correction (yellow) and has now begun an A-B-C corrective structure to the upside. After another short-term drop, BTC could continue its upward movement towards $44,000.

Both possibilities indicate that at least one more short-term drop will occur.

For BeInCrypto’s previous Bitcoin (BTC) analysis, click here

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Disclaimer

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. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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