Bitcoin Technical Analysis September 10th
Bitcoin (BTC) is still floating above the support area of $ 43,900, which pushed the price back up after falling on September 7th.
While there are bullish signals in the short term, the ongoing rally appears to be correcting. Hence, a reversal of the uptrend is unlikely to be expected.
BTC shows up
BTC collapsed as low as $ 42,483 on September 7th. After that, however, the price rallied and created a long wick underneath.
The ricochet confirmed the $ 43,900 area of support. This is the .382 fib retracement support and the horizontal support area. In addition, it also confirmed the supertrend line as support (green).
However, while price action remains bullish, the MACD and RSI are both bearish. The MACD histogram has turned negative while the RSI has moved below 50.
BTC / USDT daily chart | Source: TradingView
The two-hour chart shows that the upswing is trading within a rising parallel channel. Such channels often contain correction structures. The rise is combined with the rise in the MACD and RSI.
The main resistance levels are $ 47,850 and $ 49,050. These are the fib retracement levels of 0.5 and 0.618, respectively.
As long as BTC remains bullish within the channel, the price will likely hit these goals. However, a breakdown would mean the bullish correction is over.
Either way, the price will eventually fall below the channel.
BTC / USDT 2-hour chart | Source: TradingView
The wave number suggests that the drop could be part of wave A of the ABC correction (orange).
The number of subwaves is shown in black, indicating that there might be another drop to complete wave A.
While the number of long-term waves is still unclear, the short-term decline is likely to come first.
BTC / USDT 6-hour chart | Source: TradingView
You can see the BTC price here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Beincrypto