Bitcoin Technical Analysis July 14th

Bitcoin (BTC) fell on September 14, hitting as high as $ 43,400 before rising again and closing at $ 45,000.

While the long-term indicators are on the downside, the short-term signals point to an imminent recovery.

BTC is moving above the support zone

BTC fell significantly yesterday, reaching as high as $ 43,400. However, it made a long wick underneath and recovered, hitting a closing price near $ 45,000.

The jump served to confirm the $ 43,950 area as support. This is both horizontal support and 0.382 Fibonacci retracement support.

Despite the rebound, the technical indicators have turned bearish in the daily timeframe. The MACD is about to move into the negative zone and the RSI is below 50. Furthermore, both are turning down.

As a result, while the price action shows that BTC is holding above support, the technical indicators are bearish.

BTC / USDT daily chart | Source: TradingView

Short term movement

Despite the retreat from the daily timeframe, a look at the six-hour chart suggests a rally.

Both the RSI and the MACD create bullish divergences, an event that usually occurs before the price rises.

If there is an upward move, the next resistances are found at $ 47,850 and $ 49,050. These are the 0.5 and 0.618 Fib retracement resistance values, respectively.

BTC / USDT 6-hour chart | Source: TradingView

Indicators for the two-hour period also support this. It shows a descending parallel channel, a structure that usually contains corrective movements.

This structure is also associated with a bullish divergence on both the RSI and MACD lines.

Hence, an eventual outbreak could happen.

BTC / USDT 2-hour chart | Source: TradingView

Count waves

The wave count suggests that the current move is a flat ABC correction. If so, then BTC is currently in wave C of this structure.

One possible target for the top of the move is the zone between $ 47,900 and $ 47,950. This is the 0.5 fib retracement resistor (black) and the 1: 1 length of wave A (white).

After that, a further downward movement in the price is to be expected.

BTC / USDT 2-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.

SN_Nour

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