Bitcoin Technical Analysis September 21st

Bitcoin (BTC) fell sharply on September 20, breaking the USD 44,000 support area.

It rebounded after hitting the $ 40,000 support and creating a long wick at the bottom. However, the main area of ​​support remains near $ 38,000.

BTC is collapsing

BTC crashed on September 20, creating a large bearish candle and falling below the $ 44,000 region that had previously acted as support. Now this zone should act as a resistance zone.

Currently, BTC has found support above the 0.5 fib retracement support at $ 40,800, creating a long wick below it.

Despite the recovery, the technical indicators are definitely on the downside. MACD and RSI are both bearish and the latter has fallen below the line of 50. In addition, the supertrend line is bearish (red line).

If another drop occurs, the next big support will be found at $ 38,000. That target is the .618 fib retracement support.

BTC / USDT daily chart | Source: TradingView

Moveg in the future

The six-hour chart is providing similar bearish signals on both the RSI and the MACD.

However, it does show a potential descending channel with support near the 0.618 fib retracement support at $ 38,000.

Hence, there is another confluence of support levels near USD 38,000, suggesting that if the price falls there, BTC is likely to rebound.

BTC / USDT 6-hour chart | Source: TradingView

Finally, the two-hour chart is showing no clear bullish signs.

So a move back to the 0.618 fib retracement support at $ 38,000 seems the most likely scenario.

BTC / USDT 2-hour chart | Source: TradingView

Count waves

The number of waves suggests that BTC is in wave C of the ABC correction structure (orange).

The most likely target for the bottom of the move is between $ 37,930 and $ 38,750. This target includes the 0.618 fib retracement support (white) and provides a 1: 1 wave A: C ratio.

So far, BTC has not achieved this goal.

BTC / USDT 6-hour chart | Source: TradingView

The number of subwaves (black) indicates that the drop is a subwave three (black) and BTC is currently in the fourth subwave.

Further decline towards the previously outlined target near $ 38,000 will complete the full momentum.

BTC / USDT 2-hour chart | Source: TradingView

You can see the coin prices 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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