Bitcoin (BTC) Creates Bullish Candlestick After Considerable Bounce

Share Article
In Brief
  • Bitcoin created a bullish engulfing candlestick.

  • It is trading inside a descending parallel channel.

  • BTC is facing resistance at $44,000.

  • promo

    Stake your points and qualify for the 200,000 USDT prize pool. Start staking now!

The Trust Project is an international consortium of news organizations building standards of transparency.

Bitcoin (BTC) bounced considerably on Sept 22, creating a bullish engulfing candlestick in the process. 

Sponsored



Sponsored

While BTC is currently trading close to short-term resistance, it’s likely that the low has been reached.

Ongoing BTC bounce

BTC increased considerably on Sept 22, creating a bullish engulfing candlestick in the process. 

Sponsored



Sponsored

The bounce also validated the $40,820 area as support. This is the 0.5 fib retracement support level. 

Currently, it’s facing resistance at $44,000. This same area previously acted as support. 

Despite the strong bounce and creation of a bullish candlestick, technical indicators for BTC are still bearish. The RSI is below 50, the MACD is decreasing, and the Supertrend line is bearish.

The next closest support area is found at $38,000. This is the 0.618 Fib retracement support level and a horizontal support area.

Future movement

The six-hour chart shows a descending parallel channel in place. Such channels usually contain corrective structures. 

On Sept 21, BTC reached the support line of the channel and bounced. It’s currently in the middle of the channel, which coincides with the $44,250 resistance area (0.5 Fib retracement resistance level).

While the MACD and RSI are showing bullish signs, neither has confirmed the bullish reversal. BTC has to reclaim the midline of the channel and validate it as support in order to confirm the possibility of a breakout.

Wave count

The most likely wave count suggests that the completed BTC decrease was part of an A-B-C corrective structure (orange).

The aforementioned Sept 21 low was made very close to the $38,750 level created by giving waves A:C a 1:1 ratio. 

Furthermore, there is a completed five-wave bearish impulse (black) in the sub-wave structure.

The minute chart shows that the movement is developing into a wedge-shaped formation, which means that it could be a leading diagonal. 

Therefore, the most likely move would be a breakdown from the wedge, the creation of a higher low, and upwards continuation after that.

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

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Share Article

Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate 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.

Follow Author

Limited offer! Learn to mine and trade crypto today for free

Join

Earn up to $10,000 USD every week in CoinFLEX AMM+ Arena!

Earn Now

Be our Supreme Scorer and qualify for a grand prize pool of 200,000 USDT!

Join