Bitcoin Technical Analysis November 2nd

Bitcoin (BTC) broke through a short-term bearish pattern and subsequently confirmed it as support, suggesting the correction is complete.

Day outlook

BTC has been falling since October 20 when it hit an all-time high of $ 67,000. Since then, it has hit a local low of $ 57,820 on October 28.

BTC bounced off the 0.382 fib retracement support and continued to move higher.

Although the price is still rising, the technical indicators have not gone up yet. Both the RSI and the MACD are falling, which can be interpreted as a sign of a weak trend.

The decline in the MACD is particularly worrying as the indicator has generated 12 consecutive lower momentum bars. This is a sign that the short term trend is losing strength. A histogram that falls in the negative zone is an important bearish sign.

However, BTC is likely to have started a new rally that could reverse the MACD’s downtrend.

BTC / USDT daily chart | Source: TradingView

Current breakthrough

The 6-hour chart shows how BTC breaks over a descending parallel channel and then confirms it as support (green symbol).

This is a very optimistic sign that the correction is complete and BTC can move up.

There is a resistance at $ 63,530 created by the 0.618 fib retracement resistance. A breakout above confirms that the uptrend has resumed.

BTC / USDT 6-hour chart | Source: TradingView

Count waves

The most likely wavenumber indicates that BTC is in a 1-2 / 1-2 wave formation. This means it is currently on the third wave of a bullish impulse and the upside is likely to accelerate.

The problem with this crowd, however, is that the second wave is quite short. It is therefore possible that wave one (orange) has not yet ended.

BTC / USDT daily chart | Source: TradingView

The number of alternate waves shows that BTC is in the fifth (black) sub-wave of the same upward movement. This means it could hit a high near $ 73,000 before a correction.

In any case, both metrics suggest that BTC will soon hit new all-time highs and share the same long-term prospects. Although the short-term outlook is slightly different.

BTC / USDT 6-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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