Bitcoin (BTC) continued to decline on October 27, but is most likely nearing the end of the short-term corrective move.

Day outlook

BTC has been steadily declining since hitting an all-time high of $ 67,000 on October 20th. The decline accelerated on October 26, and BTC hit just $ 58,000 the next day.

There is minor support at $ 56,550 created by the 0.382 fib retracement support. However, the main area of ​​support is at $ 52,450 to $ 53,350. These are the short term Fib retracement level of 0.5 (white), the long term 0.382 Fibonacci retracement level (black) and the horizontal support area. Hence, this zone is expected to offer strong support if BTC falls there.

The technical indicators are falling on the daily timeframe, which supports the continuation of the downtrend.

The MACD is falling and its histogram is about to break below zero; the RSI is also falling towards the 50 line, showing that momentum is weakening.

BTC / USDT daily chart | Source: TradingView

Count waves

Short term wave count shows an ABC correction, with BTC in wave C.

This is the final part of the decline after which BTC is likely to resume previous bullish move.

In addition, the movement can be included in a descending parallel channel. This further supports the possibility that BTC will fall to $ 56,550 as that zone coincides with the support line of the channel. In addition, it gives the AC waves a 1: 1 ratio that is common in such corrections.

If the channel breaks, BTC will likely drop to the $ 52,450- $ 53,350 support area before moving higher.

BTC / USDT 4-hour chart | Source: TradingView

In the long run, BTC appears to be in a 1-2 / 1-2 wave pattern. This means that once the current short-term correction is complete, Bitcoin is expected to go up quickly.

BTC / USDT daily 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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