Bitcoin Technical Analysis October 5th

Bitcoin (BTC) rebounded significantly on October 4th, creating another bullish candle and a definitive move above the USD 47,800 resistance area.

In the short term, some weakness is developing which could lead to a decline before the uptrend resumes.

BTC moves across the resistance

BTC continued to move higher on October 4th, breaking the USD 47,800 resistance area. Now this area should serve as a support.

The technical indicators in the daily timeframe have become bullish. The MACD has entered positive territory and is rising. Similarly, the RSI is moving up and has passed the 50 mark.

However, the supertrendline is bearish and offers resistance to the price (red symbol). This is the last major area of ​​resistance that BTC will have to overcome before moving to new highs.

BTC / USDT daily chart | Source: TradingView

Future movement

The six-hour chart is showing a more pronounced breakout. In it, BTC moved above the USD 47,800 area and subsequently confirmed it as support.

While the MACD and RSI are showing some signs of weakness, neither of these indicators is in bearish.

The next area of ​​resistance is at its highest since September at $ 52,950.

BTC / USDT 6-hour chart | Source: TradingView

The 2 hour chart is showing some signs of weakness such as a bearish divergence between the MACD and RSI.

However, the latter may be in the process of breaking its bearish divergence. If this succeeds, BTC could continue on its way to new highs.

If not, the price is likely to fall in the short term.

BTC / USDT 2-hour chart | Source: TradingView

Breakthrough in authenticity

The two-hour chart shows that BTC is briefly breaking out via an ascending parallel channel. This is a sign that a new uptrend may have started. The number of long-term waves is also tending to increase.

After confirming the channel’s resistance line as support (green symbol), BTC resumed its upward movement.

However, the drop seems too small to consider as subwave 4 (black). Hence, it is more likely that wave three has lasted and another decline will occur before BTC resumes its uptrend.

BTC / USDT 2-hour chart | Source: TradingView

You can see the Bitcoin price here.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

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

According to Beincrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page