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Bitcoin (BTC) Bounces At $19,000 Support – Still a Long Way From Confirming Bullish Reversal

2 mins
Updated by Geraint Price
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In Brief

  • BTC has bounced at the $19,000 support area.
  • The daily RSI has generated bullish divergence.
  • BTC has completed a short-term five wave downward movement.
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Bitcoin (BTC) increased significantly on Wednesday and is showing the initial signs of a potential bullish trend reversal.

BTC has been falling since reaching a high of $25,211 on Aug 15. On Aug 26, the downward movement caused a breakdown from an ascending parallel channel that had been in place since the June 18 bottom. 

After the breakdown, Bitcoin continued to decrease and reached a low of $18,510 on Sept 7. The low was made slightly below the $19,000 support area, which was created by the June lows. However, the price bounced shortly afterward and reclaimed the area in the process. 

BTC bounce
BTC/USDT Chart By TradingView

Potential for bounce

Technical indicator readings support the possibility of a bounce. This is visible in the daily RSI, which has generated a significant amount of bullish divergence. Furthermore, it has bounced prior to reaching oversold territory. Such readings often precede considerable price bounces. 

If one occurs, the closest resistance area would be at $21,100. This is the 0.382 Fib retracement resistance level and coincides with the support line of the previous channel.

BTC Bullish
BTC/USDT Chart By TradingView

BTC wave count analysis

The wave count suggests that BTC is in the fifth and final wave of a downward movement (white) that began with the all-time high price in Nov.

If correct, the downward movement would take Bitcoin below its June lows, potentially falling to $15,420 or $12,770. The targets are found using the 1.27 and 1.61 external Fib retracement levels of wave four (white).

Wave count BTC
BTC/USD Chart By TradingView

However, the short-term count (red) shows a completed five-wave downward movement. It is not certain if this was the entire fifth wave from the previous image, in which case it was truncated, or if it was just the first portion (black).

In both cases, a significant upward movement is likely, whether that is a bounce towards the $21,200 to $21,900 region or if it is a new bullish trend reversal.

Short-term count
BTC/USD Chart By TradingView

For Be[in]Crypto’s previous Bitcoin (BTC) analysis, click here

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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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