Bitcoin Technical Analysis September 29th

Bitcoin (BTC) failed to break the USD 44,000 resistance area, but is trading within a short-term descending parallel channel.

While there are bullish signs in the short term, the longer term indicators suggest that the trend may be bearish.

Bitcoin regains position

On September 27, BTC was rejected from the $ 44,000 resistance area, creating a long top wick and bearish candle. Another drop followed the next day.

However, it appears to have regained its position on September 29th and is about to create a bullish candle.

BTC is currently trading near the USD 42,000 support area created by the candle wick on September 27th.

However, the technical indicators are still falling as both the MACD and RSI are falling.

Therefore, the trend cannot be considered bullish until the $ 44,000 zone is restored.

The next support is at $ 38,000.

BTC / USDT daily chart | Source: Tradingview

Parallel channel

The six-hour chart shows that BTC is still trading within a descending parallel channel. Such channels often contain voting structures.

Additionally, it trades in the upper part of this parallel channel after rising from the 0.5 fib retracement support. In addition, both MACD and RSI are rising. Hence, the indicator from the six-hour timeframe indicates that a breakout would be the most likely scenario.

BTC / USDT 6-hour chart | Source: Tradingview

The two-hour chart supports this view. It shows BTC moving along an ascending support line and bouncing off it for the third time yesterday.

In addition, both the RSI and MACD are bullish and the forerunner is about to break the 50 mark.

If BTC manages to break the short-term resistance area at $ 43,000, which is the 0.5 Fib retracement resistance level, and the horizontal zone, it means a breakout is occurring above the channel.

BTC / USDT 2-hour chart | Source: Tradingview

Count waves

Rather, the wavenumber suggests that the September 7-21 decline is a completed ABC correction. If so, wave A: C has a very close 1: 1 ratio.

However, the subsequent jump (highlighted) was not an impulsive move. Hence, this leaves some doubts about the possibility that this is the correct wavenumber.

BTC / USDT 6-hour chart | Source: Tradingview

The number of waves of substitution suggests that the overall decline could be Wave W of a complex correction and BTC is currently completing Wave X.

The possibility that it is a 1-2 / 1-2 wave formation is there but is currently unlikely.

Therefore, at the time of writing, it is not possible to determine the exact number of waves.

However, both prefer short-term upside potential, even if long-term volatility is very different.

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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