Bitcoin (BTC) appears to be facing a short-term correction, after which a significant rally is expected.

Day outlook

BTC rebounded on October 25, forming a small bullish bar, moving towards a high of $ 63,710. However, the profit was not enough to turn the technical indicators back up.

The MACD is still falling despite being in positive territory. This means that while the short-term trend is still moving faster than the long-term trend, the momentum is slowly weakening.

The RSI is falling but still above 50. This shows that momentum is still increasing but is slowing down, similar to the MACD.

Initial support is at $ 56,600. This is only minor support as it is generated by the short term fib retracement level of 0.382 (white) rather than any horizontal area of ​​support.

The main support range is between $ 52,400 and $ 53,350. This area is a collection of support levels including:

• 0.5 short term fib retracement support (white)
• 0.382 long-term fib retracement support (black)
• Horizontal support zone.

Therefore, when BTC price falls into this zone, it is expected to rebound.

BTC / USDT daily chart | Source: TradingView

Short term movement

The two-hour chart shows that BTC is moving below the descending resistance line. As long as this is the case, the short-term trend should be pointing downwards. That line rejected BTC on October 25th (red symbol), causing a short-term decline. This is also in line with the weakness outlined on the daily chart.

There are also resistance levels between $ 63,300 and $ 64,150 created by the 0.5-0.618 Fib resistance levels and the horizontal resistance range.

BTC / USDT 2-hour chart | Source: TradingView

Count waves

The short-term wave count shows that BTC is likely within an ABC correction. This means that after the correction ends, another rally is expected.

If wave A: C has a 1: 1 ratio, BTC could revert to the small support area at $ 56,600 described in the first section.

For a long-term analysis of the wavenumber click here.

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