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

This helped the price break out via the short-term descending parallel channel. BTC is currently nearing the $ 47,850 to $ 49,050 resistance area.

Bitcoin shows up

After reaching just $ 43,400 on September 13, BTC has bounced back significantly. The next day it created a bullish engulfing candle and hit a high of $ 47,250. Additionally, it is still above the $ 43,950 horizontal support area, which is in line with 0.382 fib retracement support.

While price action looks bullish, the technical indicators are definitely bearish. The RSI is below 50, the MACD is falling and about to turn negative, and the supertrendline has become bearish. The last time it did this was after falling from its all-time high in April.

As a result, price action and technical indicators produce conflicting results.

BTC / USDT daily chart | Source: TradingView

Future movement

The six-hour chart looks less bearish. It shows that BTC broke out on a descending parallel channel after both the RSI and MACD created bullish divergences. Such channels often contain corrective movements.

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

BTC / USDT 6-hour chart | Source: TradingView

The two-hour chart shows that BTC has confirmed the channel’s resistance line as support (green symbol). Also, the RSI is above 50 and the MACD is in positive territory.

BTC / USDT 2-hour chart | Source: TradingView

Count waves

The number of waves most likely to occur indicates that the rebound is wave C of the ABC flat correction.

The area that will likely act as the tip for the move is the zone between $ 47,900 and $ 47,950. This area is created by a 1: 1 wavelength A (white) and a 0.5 fiber retracement resistor (black).

However, if the price breaks out of this zone, it can rebound into the $ 50,720 to $ 50,785 zone. This is the 1: 1.61 length of wave A (white) and the 0.786 fib retracement resistance.

Therefore, if the price moves above the 0.5 fib retracement level, it is likely that the price will move to the 0.786 fib retracement level.

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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