Bitcoin Technical Analysis October 27th

Bitcoin (BTC) is likely close to a correction. After this correction, the price should rise sharply again.

Day outlook

BTC fell significantly on October 26, creating a bearish candle bar. This is a bearish candle in which the entire upward movement of the previous day is covered by an equal or greater decrease on the following day.

The main support range is between $ 52,400 and $ 53,350. This area consists of short-term (white) and long-term (black) fib retracement levels and a horizontal support area. There is also a minor support at $ 56,550 created from the short-term Fib level.

Technical indicators support the continuation of the decline.

MACD is in positive territory but is decreasing. The RSI is above 50 but is also falling. This shows that the dynamics are losing strength.

BTC / USDT daily chart | Source: TradingView

BTC rejected

The six-hour chart shows that BTC has been moving below a descending resistance line since the all-time high on October 20th.

Most recently, this line rejected the price on October 25th (red symbol), thus initiating the current downward movement. The rejection also coincided with the resistance area of ​​$ 63,650.

Therefore, as long as the descending resistance line is intact, the short-term trend is viewed as bearish.

BTC / USDT 6-hour chart | Source: TradingView

Count waves

The short-term wave count shows that BTC is in an ABC correction, likely within a parallel channel. For a long-term analysis of the wavenumber click here.

Currently, BTC is in wave C, the final part of the correction, and after that the price is likely to rebound.

There is strong support near $ 56,500 and a fall to that level will create an A: C wave of exactly 1: 1 that is also in line with the support line of the channel. In addition, this zone coincides with the short-term Fib support described in the first section.

BTC / USDT 4-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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