On Sept 16, Bitcoin rebounded from a horizontal support level and reached a high of $48,557 before falling slightly.
Today, it bounced at the $47,000 minor support area and broke out from a descending resistance line shortly afterwards.
BTC resumes ascent
On Sept 13, BTC bounced at the $43,950 support area and has been moving upwards since. The upward move culminated with a high of $48,557 on Sept 16. A short-term decrease followed after.
Despite the significant bounce, technical indicators in the daily time-frame are still somewhat bearish.
The MACD attempted to make a bullish reversal (green icon), but failed to do so because of yesterday’s bearish candlestick close. The RSI gives a neutral reading since it is at the 50-line and the Supertrend shows a bearish trend (red line).
Therefore, the rebound appears to be just a relief rally rather than a bullish trend reversal.
The six-hour chart is more bullish. It shows that the ongoing bounce was preceded by bullish divergences in both the RSI and the MACD.
Following this, BTC managed to reclaim the $47,000 support area and validated as support on Sept 16.
As long as it does not close below this area, BTC is expected to continue moving upwards.
Furthermore, the two-hour chart shows that BTC has already broken out from a descending resistance line.
In addition to this, the MACD has given a bullish reversal signal and the RSI is above 50.
Therefore, it’s likely that BTC will continue to increase in the short-term.
The most likely wave count indicates that BTC is in wave C of an A-B-C corrective structure (black).
The first target for the top of the move was $47,940. This gave waves A:C a 1:1 ratio (black) and was the 0.5 Fib retracement resistance level (white).
Therefore, BTC is now moving towards the next most likely target of $50,750. This would give waves A:C a 1:1.61 ratio and is the 0.786 Fib retracement resistance level.