Exclusive Bitcoin (BTC) Makes Another Attempt At Breaking Out Above $46,800

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In Brief
  • Bitcoin was rejected by the $46,800-$47,800 resistance area.

  • It created a shooting star candlestick.

  • BTC has support at $39,900 and $37,770.

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Bitcoin (BTC) managed to reach a high of $46,743 on Aug 11, but was rejected almost immediately after. 

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The ongoing decrease was preceded by significant short-term weakness. Following this, BTC broke down from an ascending wedge.

BTC gets rejected

BTC has been moving upwards at an accelerated rate since creating a higher low on Aug 5. This led to a high of $46,743 on Aug 11. 

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The high was made at the lower portion of the range between $46,800-$47,800. This range is created by a confluence of Fib retracement levels and is also a horizontal resistance area. After this, BTC created a shooting star candlestick (red icon) and decreased sharply toward $45,000.

The decrease was preceded by bearish divergence in the RSI and the MACD has created one lower momentum bar, a sign that momentum is gradually reversing. 

Therefore, it’s possible that the top of the move has been reached.

BTC Chart By TradingView

Ongoing decrease

The two-hour chart shows that the downward move was preceded by significant bearish divergences in the RSI and MACD.

If a downward move transpires, the main support areas are found at $39,900 and $37,770. These levels are the respective 0.382 and 0.5 Fib retracement support levels.

BTC Chart By TradingView

The same outlook is shown in the six-hour time frame. It also shows a double top pattern, in which the second top was followed by a bearish engulfing candlestick.

BTC Chart By TradingView

Wave count

The long-term wave count is not entirely clear. However, the higher high from Aug 11 indicates that it’s possible that wave five has been completed. 

In this case, it was as part of an ending diagonal, completing with the $46,743 high. After this, BTC broke down from an ascending wedge and may have begun to correct. 

If this is true, BTC could decrease toward the support levels outlined above.

BTC Chart By TradingView

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 discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate 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.

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