The Bitcoin (BTC) price has been gradually decreasing since breaking out on Feb. 8.
Despite the decrease, the daily trend is still bullish. Furthermore, Bitcoin has reached an important support level which is expected to initiate a bounce and continuation of the upward movement.
Current Bitcoin Movement
On Feb. 11, BTC continued its gradual decrease after it broke out on Feb. 8. So far, BTC has reached a local low of $43,727.
Despite the drop, technical indicators are still bullish, suggesting that this is just a regular retracement.
The closest horizontal support area is found at $41,300.
The two-hour chart shows that BTC has been following an ascending support line since the upward movement began on Jan. 27.
This line currently coincides with the $41,300 support area.
At the time of press, BTC had bounced at the 0.382 Fib retracement level and is in the process of initiating an upward movement.
While technical indicators fail to confirm the trend reversal, there is strong support back at $41,300.
The wave count suggests that BTC is in sub-wave five (black) of wave three (orange).
If sub-wave 4 has not ended yet, it’s likely close to doing so.
The most likely target for the top of the move is found between $52,600-$53,400, while the next most likely range is found at $58,000-$59,400.
A decrease below the sub-wave one high at $41,000 would invalidate this particular wave count.
Bitcoin is expected to increase toward the range of $52,600-$53,400. The more bearish scenario has BTC dropping towards a low of $41,300 before moving upwards once more towards $52,600-$53,400.