Bitcoin (BTC) rebounds from support rebound

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Bitcoin (BTC) rebounded significantly on September 14, creating a bullish engulfing candlestick in the process.

This caused a breakout of a short-term parallel descending channel. BTC is now approaching the resistance zone of $ 47,850 to $ 49,050.

Bitcoin bounces

After hitting a low of $ 43,400 on September 13, BTC has rebounded significantly. The next day it created a bullish engulfing candlestick and hit a high of $ 47,250. On top of that, it is trading above the horizontal support area of ​​$ 43,950, which is the 0.382 Fib retracement support level.

While the price action looks bullish, the technical indicators are firmly bearish. The RSI is below 50, the MACD is down and about to go into negative territory, and the Supertrend has turned bearish. The last time this happened was after the fall from the historic high in April.

Therefore, price action and technical indicators give contrasting readings.

Future movement

The six-hour chart appears less bearish. This shows that BTC exited a descending parallel channel after the RSI and MACD generated bullish divergences. Such channels usually contain corrective movements.

However, BTC is approaching a strong resistance zone between $ 47,850 and $ 49,050 created by the Fib retracement resistance levels of 0.5-0.618.

The two hour chart shows that BTC has already validated the resistance line of the channel as support (green icon). Additionally, the RSI is over 50 and the MACD is positive.

Number of waves

The most likely wave count indicates that the bounce is part of wave C of a flat ABC correction structure.

The most likely area for the summit is between $ 47,900 and $ 47,950. This range is created by the 1: 1 length of wave A (white) and the 0.5 Fib retracement resistance level (black).

The second most likely area for the top is between $ 50,720 and $ 50,785. This is the 1: 1.61 length of wave A (white) and the 0.786 Fib retracement resistance level.

Therefore, if the price were to break above the 0.5 Fib retracement level, it is likely that it would rise to the 0.786 Fib retracement level.

For the previous analysis of BeInCryptos Bitcoin (BTC), click here.

Disclaimer All information on our website is posted in good faith and for general information purposes only. Any action that the reader takes on the information found on our website is strictly at his own risk.

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