Bitcoin Retraces After Being Rejected Below $11,000

Updated by Dani Polo
In Brief
  • Bitcoin is facing strong resistance at $11,150.
  • BTC has likely begun a bullish impulse.
  • The price is completing an A-B-C formation.
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The Bitcoin (BTC) price is approaching a crucial resistance area at $11,150 but was rejected prior to getting there.

After a short-term decrease, BTC is expected to make another attempt at breaking out.

Bitcoin Approaches Resistance

The Bitcoin price has been following a descending resistance line since it reached a local high of $12,473 on Aug 17. BTC has validated this resistance twice since.

The price is currently approaching this resistance line once again. The line also coincides with the $11,150 area, which previously acted as support but turned to resistance on Sept 19.

A breakout above this resistance line and the $11,150 area would confirm that the trend is bullish.

Bitcoin Descending Resistance
BTC Chart By TradingView

The shorter-term chart shows that the price was twice rejected by the 0.786 Fib level of the previous decrease at $10,955 and has begun to retrace.

The $10,550 area is expected to provide support since it’s both the 0.5 Fib level of the entire upward move and a previous resistance area. As long as this zone holds, the possibility of continuation remains high.

Bitcoin Retracement
BTC Chart By TradingView

Wave Count

It is likely that on Sept 9 BTC began a bullish impulse (shown in orange below). It looks to have already completed waves 1 and 2 and has likely begun the third.

Preliminary targets for the top of the third wave are found at $12,180, $12,880, and $13,380 (the 1.61, 2.27, and 3.61 Fib levels of sub-wave 1).

The sub-waves are shown in blue in the chart below:

BTC Wave Count
BTC Chart By TradingView

The sub-wave count shows that BTC is currently correcting in sub-wave 2, which is transpiring inside an A-B-C formation (shown in red below). The formation is expected to end between the 0.5 and 0.618 Fib levels between $10,450-$10,550, but its exact shape depends on if the A portion has three or five waves.

BTC has yet to reach the 1.382 Fib time level (shown in blue), so it’s unlikely that the corrective period has ended.

BTC Short-Term count
BTC Chart By TradingView

To conclude, while it is likely that BTC has begun an upward move, a short-term correction is expected before the price continues upwards.

For BeInCrypto’s previous Bitcoin analysis, click here!

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