Bitcoin (BTC) bounces back from rapid drop to $ 60,000

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Bitcoin (BTC) is still trying to break through the resistance zone of $ 63,530. This would likely lead to a new record price.

BTC declined significantly in the early hours of November 3, falling to a low of $ 60,382. However, it bounced back soon after and created a long lower wick (black arrow). This is seen as a sign of buying pressure since the price decline could not be sustained. It is a bullish event.

Technical indicators still provide mixed readings.

The MACD, which is created by short and long term moving averages (MA), has created 14 successive lower histogram bars (black circle). This indicates that short-term AD is gradually decelerating.

However, the RSI, which is an indicator of momentum, has apparently rebounded above 50 after a continued decline. This is a sign that the momentum is still bullish.

Therefore, while the price action in the daily time frame is bullish, the technical indicators are mixed.

Future movement

The six hour chart shows that BTC exited a descending parallel channel and validated it as support thereafter. This indicated that the correction phase that had been in place since the historic high was over.

Since then, BTC has been following an ascending (dashed) support line. Yesterday’s rebound coincided with both the support line (green icon) and the support level of the 0.618 Fib retracement at $ 61,270 (black).

The main resistance area is at $ 63,530. This is both a horizontal resistance area and the 0.618 Fib (white) retracement resistance level.

A break above this level would likely cause the price to rise rapidly.

BTC wave count

The number of waves suggests that BTC is in sub-wave five (black) of the first wave (orange). This means that BTC will likely rise once more before correcting in the short term.

A target for a local summit is almost $ 73,000. This target is found using the outer Fib retracement of 1.61 on subwave four (black) and the projection from waves 1-3 (white).

The other possibility would suggest that BTC is in a 1-2 / 1-2 wave formation. In this case, it is currently in wave three, which would mean that the rise could accelerate quickly. In this event, BTC may well hit a new all-time high before another corrective phase.

Both possibilities indicate that BTC is likely to hit a new all-time high and remains in a long-term uptrend.

For BeInCrypto’s previous Bitcoin (BTC) analysis, 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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