Bitcoin (BTC) attempted a rally on September 27th but was rejected by the resistance area of $ 44,000.
While BTC is still trading in the upper part of the descending parallel channel, the price action lacks bullish signals.
On September 27, BTC attempted to move across the $ 44,000 region but was immediately denied (red icon). This area acted as a support in August and early September, but turned into resistance after the collapse on September 20. The rejection resulted in a long top wick and a receding candle.
In addition to trading below the resistance, the BTC technical indicators have been trailing as both the RSI and MACD are falling. The MACD has just crossed the negative zone while the RSI is below 50.
If BTC continues to move down, the next support will be at $ 38,000.
BTC / USDT daily chart | Source: Tradingview
The six-hour chart shows a descending parallel channel that often contains corrective structures.
Currently, BTC is trading on the upper part of the channel. Additionally, it is trading just above the 0.5 fib retracement support.
Although the technical indicators are above the confluence of support levels, they are declining / undecided. The MACD is in negative territory and has lost strength while the RSI has just fallen below 50.
BTC / USDT 6-hour chart | Source: Tradingview
The two-hour chart shows that BTC is moving along a rising support line and has hit three higher lows since September 21st. While this could be viewed as a bullish structure, the price action is not an increase.
The previous resistance at $ 43,000 was meant to serve as support that was lost on the first test. In addition, both the MACD and the RSI are falling.
While there is very strong support at $ 41,500 created by the 0.786 Fib retracement level and ascending support line, the price action is unlikely to be bullish.
BTC / USDT 2-hour chart | Source: Tradingview
The highest number of likely waves still suggests that the September 7th to September 21st fall is an ABC correction, with wave A: C having an exact ratio of 1: 1, also due to the presence of a descending parallel channel is supported.
However, the move since the bottom does not appear to be impulsive, raising doubts about the possibility that this is the correct wavenumber.
BTC / USDT 6-hour chart | Source: Tradingview
The number of substitution waves can be viewed as a flat ABC correction (above) or, in the bearish case, as a 1-2 / 1-2 wave structure (below).
The exact number of waves cannot be determined at this point in time.
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.
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