Bitcoin Technical Analysis September 24th

After a significant rally since September 21, Bitcoin (BTC) is about to recapture the $ 44,000 region.

BTC trades in the upper part of the descending parallel channel that is likely to break out. However, it also meets with short-term resistance.

BTC is trying to reclaim assistance

On September 22nd, BTC created a bullish engulfing candle after bouncing off the 0.5 fib retracement support at $ 40,800.

The next day, it continued to move higher, breaking the $ 44,000 area. This area previously acted as a support and is now intended to act as a resistance.

However, BTC has already hit a closing price above it and is now in the process of re-confirming this as support. That would be a big bullish move.

Technical indicators in the daily time frame are still falling. The RSI is below 50, the MACD is falling (despite creating a higher momentum bar) and the supertrendline is bearish.

If another breakdown occurs, the next support will be found at $ 38,000.

BTC / USDT daily chart | Source: TradingView

Future BTC movement

The six-hour chart shows BTC trading in the upper part of a descending parallel channel. Such channels often contain corrective movements, so an outbreak can be expected.

However, BTC is trading within the Fib resistance range of 0.5-0.618 so a short-term rejection could come before a breakout.

BTC / USDT 6-hour chart | Source: TradingView

This possibility is also supported by the two-hour chart, which shows a falling MACD (red symbol).

BTC / USDT 2-hour chart | Source: TradingView

Count waves

The decline since September 7th could be an ABC correction (orange) with wave A: C in a ratio close to 1: 1.

The September 21 low should mark the end of this correction. A rise above the low of wave A (red line) supports this possibility.

The longest wave number indicates that this decline is the second wave of a long-term bullish impulse.

BTC / USDT 6-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.

SN_Nour

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