Bitcoin (BTC) Struggles to Gain Footing After Falling Below $60,000

Share Article
In Brief
The Trust Project is an international consortium of news organizations building standards of transparency.

Bitcoin (BTC) resumed its descent on Oct 27 but is most likely approaching the end of its short-term corrective movement.

Sponsored





Sponsored

BTC has been moving downwards since reaching an all-time high price of $67,000 on Oct 20. The decrease accelerated on Oct 26, and BTC reached a low of $58,000 the next day.

There is minor support at $56,550, created by the 0.382 Fib retracement support level. However, the main support area is found at $52,450-$53,350. This is the short-term 0.5 Fib retracement level (white), the long-term 0.382 Fib retracement level (black), and a horizontal resistance area. Therefore, if BTC falls back to this zone, the area is expected to provide strong support. 

Sponsored



Sponsored

Technical indicators in the daily time frame are bearish, supporting the continuation of the downward movement. 

The MACD is decreasing and has nearly crossed below 0. The MACD is created by using a short and long-term moving average (MA). Despite the indicator still being positive, the downward slope shows that the short-term MA is losing speed.

The RSI, which is a momentum indicator, is falling towards the 50-line. Crosses above and below 50 are commonly used to determine the direction of the trend. Similar to the MACD, the fact that the RSI is above 50 is a bullish sign, but its downward slope shows that momentum is diminishing.

BTC wave count

The short-term wave count shows an A-B-C correction, in which BTC is in the C wave.

This is the final portion of the decrease, after which BTC is likely to resume its previous upward move. 

Furthermore, it’s possible that the movement is contained in a descending parallel channel. This further supports the possibility that BTC will drop towards $56,550 since the area coincides with the support line of the channel. Also, it would give waves A:C a 1:1 ratio, which is common in such corrections. 

If the channel breaks, then BTC would be likely to decrease towards the previously outlined $52,450-$53,350 support area before continuing upwards.

In the long-term, BTC seems to be in a massive 1-2/1-2 wave formation. This means that after the current short-term correction is complete, the increase would be expected to accelerate greatly.

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

Don’t get FUD! Win 1 ETH when you deposit $100 with Bybit!      

Join

FOMO no more. Win 1 BTC when you trade $100 on Bybit!      

Join

Bybit New Token Listing: Win In-Game NFTs and SIDUS Tokens.      

Win Now!