Categories: Analysis

Bitcoin Technical Analysis September 16th

Bitcoin (BTC) continued to rise on September 15, confirming an upward break via a parallel descending channel.

It is quickly approaching the next resistance area at $ 49,070. Due to the confluence of the Fib levels, there will be more resistance at $ 50,700.

BTC jumps

BTC has moved up since bouncing off the $ 43,950 support area on September 13th. It produced two consecutive bullish candles over the next two days.

Despite the recovery, technical indicators continue to fall. However, they show some minor bullish reversal signs. The MACD stopped its decline by creating a higher momentum bar yesterday and the RSI is trying to move above the 50 level.

However, the supertrend line has become bearish (red line).

BTC / USDT daily chart | Source: TradingView

Future movement

The six-hour chart looks more bullish as it confirms a breakout on a descending parallel channel. After the breakout, BTC confirmed the channel as support before resuming its upward move.

In addition, both MACD and RSI are rising. The MACD is about to break positive territory while the RSI has crossed above 50.

The next resistance is at $ 49,070. That target is the 0.618 Fib retracement resistance level.

BTC / USDT 6-hour chart | Source: TradingView

However, the 2-hour chart is showing the first signs of weakness in the form of a bearish divergence between RSI and MACD.

Therefore, the price may drop for a short period of time before the uptrend resumes.

BTC / USDT 2-hour chart | Source: TradingView

Count waves

The wave count shows that BTC is in wave C of the ABC correction structure (black).

It moved over the first target for the top of Wave C at $ 47.940. This is the 0.5 fib retracement resistance (white) and the 1: 1 ratio of wave A: C (black).

The next most likely target for the top of Wave C is $ 50,750. This is a 1: 1.61 ratio of wave A: C and the 0.786 fib retracement resistor (white).

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.

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