Bitcoin (BTC) has been down since it hit a new all-time high of $ 67,000 on October 20.

Day outlook

Bitcoin fell significantly on October 21, falling from a high of $ 66,639 to as high as $ 62,000. This created a bearish engulfing candlestick pattern, meaning the previous bullish candle was completely covered.

While the technical indicators are bullish on the daily timeframe, they are showing clear signs of weakness.

The MACD histogram has produced a lower momentum bar. This is a sign that the short-term trend is losing strength.

Additionally, the RSI has fallen below 70. A fall below 70 is a sign that although it remains above 50, momentum is slowing, suggesting that the trend is still bullish.

The next major area of ​​support is at $ 57,200. This is the previous area of ​​resistance created by the 0.786 fib retracement resistance.

BTC / USDT daily chart | Source: TradingView

BTC is falling

The six-hour chart shows that the pullback came after both the RSI and MACD (in blue) created bearish divergence. This is a sign that the rise in prices is not accompanied by an increase in momentum and is often accompanied by bearish moves.

However, since then the RSI has created a hidden bullish divergence (orange). It remains to be seen whether this divergence will be weakened by a further decline or whether it will trigger another rally.

The 0.382 fib retracement level of the overall move up is at $ 56,500, very close to the above-described support area at $ 57,200, further solidifying its strength.

BTC / USDT 6-hour chart | Source: TradingView

Count waves

The wave count shows that BTC has likely completed the fifth wave of a bullish pulse (black). It is confirmed when the price drops below the ascending parallel channel.

The channel is created by joining the bottom of shafts two and four and then projecting it onto the top of shaft 3. A break below the channel is a strong sign that the uptrend is over.

When this happens, BTC is expected to fall within the USD 57,200 support area. If the price recovers, it can soar to $ 70,000 before falling.

In any case, BTC is likely to be nearing the local high of the upward movement. Accordingly, the long-term wave count suggests that BTC will eventually rise above $ 100,000.

BTC / USDT 4-hour chart | Source: TradingView

You can see the BTC 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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