After breaking below the $ 44,000 support area, Bitcoin (BTC) found support just above the $ 40,000 level and rebounded.
If BTC hasn’t hit the low yet, it will likely complete the pattern with another small drop.
On September 20, BTC broke below the USD 44,000 support area through a large bearish candle. The next day it continued to decline, briefly falling below $ 40,000 before climbing back up.
The first area of support is at $ 40,800, which is the 0.5 Fib retracement support. Although BTC initially fell below this level, it means that the area has been confirmed as support if the current bounce continues.
However, the technical indicators continue to decline. RSI and MACD are falling and the supertrendline is bearish.
While the $ 40,800 level is fib retracement support only, there is stronger support at $ 38,000 generated by both the 0.618 fib retracement support and the horizontal support area.
BTC / USDT daily chart | Source: TradingView
The most likely number of waves indicates that BTC is nearing a low point or wave C has completed the ABC correction (orange).
The target of $ 38,766, which the A: C wave will deliver at a 1: 1 ratio, was almost touched yesterday. The target is also in line with the support given above for the retracement at 0.618 Fib.
BTC / USDT 6-hour chart | Source: TradingView
While the number of partial waves (black) shows a complete 5-wave pulse, wave five has no relation to the previous waves.
It is therefore possible that the gradient is part of an extended wave 5 and a further gradient in the direction of the support zone sketched above is still possible.
However, it looks like BTC is rapidly approaching a low point if it hasn’t already.
BTC / USDT 2-hour chart | Source: TradingView
You can see the Bitcoin 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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