The Bitcoin (BTC) price initiated a failed bounce once it reached the minor support level at $11,266. After another possible short-term decrease, the price is expected to resume its upward movement.
Bitcoin Approaches Support
On Oct. 12, the BTC price reached a high of $11,731. Te high was combined with significant bearish divergence in the two-hour RSI, and preceded a considerable increase that is still ongoing. Throughout the decrease, the price has grazed the $11,266 minor support area, which coincides with the 0.382 Fib level of the entire upward move. The next support levels are found between $10,981 and $11,124.
Yesterday, the BTC price initiated a bounce but immediately created a bearish engulfing candlestick, causing another drop towards the support area.
However, the MACD has begun to increase, possibly signalling that the price is getting ready for another upward move.
The shorter-term 30-minute chart shows that the price is possibly trading inside a descending wedge, even though the resistance and support lines have not been validated sufficient times.
However, the presence of the wedge and possible breakout fits with the bounce from support and the potential increase resulting from the MACD movement.
If the price breaks out, the closest resistance levels would be found between $11,509 and $11,602.
In yesterday’s analysis, it was stated that
“The price is currently in sub-wave 4, which is corrective (red). Sub-wave 2 was a swift and deep retracement, and because of alternation, sub-wave 4 is expected to be long and shallow, possibly ending near the 0.382 Fib level at $12,261.”
It seems that the price is still inside wave 4 (highlighted in red below), approaching the 0.382 Fib level once more.
If the count is correct, the price could increase towards $11,918 and $12,231 in order to complete wave 5.
A decrease below the sub-wave 1 high at $10,745 would invalidate this particular wave count.
The shorter-term count (green) suggests another decrease before the price eventually resumes its upward movement. However, the count is outlined in the 15-minute chart, making it a very short-term count and prone to less accurate than longer-term counts.
To conclude, Bitcoin is expected to possibly make another downward move towards the closest support area before resuming its upward movement.
For BeInCrypto’s previous Bitcoin analysis, click here!
Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.