Bitcoin Fails to Close Above $34,000 Resistance

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In Brief
  • Bitcoin is following a long and short-term descending resistance line.

  • There is resistance at $34,000 and support at $29,000.

  • BTC is in the C wave of an A-B-C corrective structure.

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The Bitcoin (BTC) price consolidated on Feb. 1, but is still trading below the $34,000 resistance area and a descending resistance line.



It’s likely that Bitcoin is still in a corrective structure and will eventually resume its downward movement.

 

Bitcoin Struggles with Resistance

On Feb. 1, BTC traded above and below its opening price but failed to initiate an upward movement of any significance.



BTC is still trading below a descending resistance line that has been in place since the all-time high price of Jan. 8.

Technical indicators are still bearish.

While the MACD has made an attempt at initiating a bullish reversal (shown with the green arrow below), it was promptly pushed down. The RSI is below 50 and the Stochastic oscillator is also decreasing.

The closest support area is found at $29,000. Below that there is another support level at $26,000.

BTC Chart By TradingView

Short-Term Resistance

The two-hour chart shows another descending resistance line that BTC has been following over the past two days.

While the MACD has gradually begun to turn bullish and the RSI is increasing, it seems that BTC is retracing rather than beginning a new upward move.

Even if BTC were to break out from the resistance line, there are other resistances at $35,350 and $36,108 (0.5 and 0.618 Fib retracement levels). 

Unless BTC manages to reclaim the 0.618 Fib retracement resistance at $36,100, it is likely that the current increase is corrective.

BTC Chart By TradingView

Wave Count

The wave count suggests that BTC is in the C wave of an A-B-C corrective structure (shown in white below).

If waves A:C have a 1:1 ratio —common in such corrections — BTC would reach a low of $25,719. This coincides with the support line of a potential descending parallel channel and the 0.5 Fib retracement level support outlined in the first section.

If waves A:C take the same amount of time, BTC would reach a low on Feb. 11.

The sub-wave count is given in orange and BTC is in sub-wave 2.

BTC Chart By TradingView

A closer look shows that BTC has possibly one more upward move left towards $35,300 before resuming its downward movement.

BTC Chart By TradingView

Conclusion

Bitcoin is likely in the final leg of a corrective structure that will eventually take it toward $26,000.

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.
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Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo. In 2019, he decided to focus full-time on cryptocurrencies and trading.

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