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Bitcoin Drops After Rejection Near $10,600

2 mins
Updated by Gerelyn Terzo
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In Brief

  • The Bitcoin price has shown short-term weakness.
  • There is support and resistance at $10,000 and $10,500.
  • The price is likely in wave 4 of a bearish five wave formation.
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Despite the fact that the price has been moving upwards since Sept. 8, the bitcoin price has shown considerable weakness. It is possible that the price has begun the final wave down that could take it to $9,700.

Short-Term Weakness

The Bitcoin price has been increasing since reaching a low of $9,825 on Sept. 8. Even though the price has reached a high of $10,545, it has created long upper wicks each time it has moved above $10,400, failing to reach a close above this level and creating a minor resistance area. In addition, the daily RSI has generated hidden bearish divergence, a sign of weakness. Based on the wick movement, the closest resistance and support levels are found at $10,500 and $10,000.
Bitcoin's Daily Decrease
BTC Chart By TradingView
The shorter-term two-hour chart shows more weakness. The MACD has begun to roll over after generating considerable bearish divergence and has almost crossed into negative territory. In addition, volume has been doing the same and has been considerably higher during bearish candlesticks. This is a bearish sign, indicating that the price is expected to move downwards.
Bitcoin Short-term decrease
BTC Chart By TradingView

Wave Counts

In BeInCrypto’s Sept. 11 analysis, we stated that :
The Bitcoin price likely began a bearish impulsive five-wave formation on Sept. 2 and currently is in wave 4, which is transpiring inside a complex corrective structure (W-X-Y, in red below). The most likely level for the wave to end would be between $10,840-$10,944, which is the 1.61 Fib level of wave W (red) and the 0.5 Fib of the entire decrease (orange).
Currently, Wave Y has already reached and moved above the 1:1 level of wave X at $10,465, reaching a high of $10,580. The level does not have confluence with other fib targets.
Bitcoin Wave Count
BTC Chart By TradingView
Due to the fact that wave 3 and the ensuing correction was extended, we would expect a small wave 5. If the price has already reached a high, a possible target for the upcoming low would be at $9,721, the 0.382 Fib level of waves 1-3. A closer look at wave Y reveals an A-B-C sub-wave formation. The previously mentioned high of $10,580 creates a 0.61:1 ratio with sub-wave A, making this a possible level for the top to be reached.
Bitcoin Short-Term
BTC Chart By TradingView
Furthermore, the decrease from the high looks impulsive in nature, meaning that it is quite likely that the price has begun a downward move which could take it to $9,721.
Bitcoin Impulsive
BTC Chart By TradingView
To conclude, it is possible that the bounce which began on Sept. 8 has ended and BTC has begun a downward move that could take it towards $9,700. For BeInCrypto’s previous Bitcoin analysis, click here!
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Disclaimer

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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