Bitcoin (BTC) rebounded significantly on September 22nd, creating a bullish engulfing candle in the process.
Although BTC is currently trading near the short-term resistance, it is likely that a bottom has been hit.
BTC bounced back significantly on September 22nd creating a bullish engulfing candle in the process.
The recovery also confirmed the USD 40,820 area as support. This is the 0.5 fib retracement support.
It is currently facing resistance at $ 44,000. It is this zone that previously acted as a support.
Despite a strong rebound and the emergence of a bullish candle, technical indicators are still falling. The RSI is below 50, the MACD is falling and the super trend line is bearish.
The next area of support is at $ 38,000. This is the 0.618 fib retracement support and the horizontal support area.
BTC / USDT daily chart | Source: TradingView
The six-hour chart shows a descending parallel channel. Such channels often contain voting structures.
On September 21, BTC hit the channel’s support line and ricocheted off. It is currently in the middle of the channel’s midline coinciding with the $ 44,250 resistance area (0.5 fib retracement resistance).
While the MACD and RSI are showing bullish signs, none of them have confirmed a bullish reversal. BTC needs to reclaim and confirm the channel’s centerline as support to confirm the possibility of a breakout.
BTC / USDT 6-hour chart | Source: TradingView
The most likely wavenumber indicates that BTC has completed the ABC correction (orange).
The above-mentioned September 21 low was created very close to the $ 38,750 level, creating the 1: 1 ratio wave A: C.
In addition, there is a complete five-wave bearish impulse (black) in the sub-wave structure.
BTC / USDT 4-hour chart | Source: TradingView
The 30 minute chart shows that the movement is developing into a wedge, which means that it could be a crossover beginning.
Hence, the most likely move would be to break below the wedge creating a higher low and then moving higher.
BTC / USDT 30-minute 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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