Bitcoin Technical Analysis November 16th

Bitcoin (BTC) fell significantly on November 15th, followed by an even bigger drop on November 16th. Attempts are currently being made to find support.

Day outlook

BTC has fallen since it hit an all-time high of $ 69,000 on November 10th. The move down followed a bearish divergence in both the MACD and RSI. Such events often herald a downward trend reversal.

The next support is found at $ 57,850. This is the short term fib retracement support at 0.382 (white). If price fails to bounce off these levels, a fall into the important $ 53,700- $ 54,300 support area is possible. It consists of 0.5 short-term fib retracement support and 0.382 long-term fib level (black).

BTC / USDT daily chart | Source: TradingView

Current incident

The six-hour chart is similarly bearish. It shows that BTC has broken both the USD 63,500 support area and the ascending support line that has formed since October 26th.

The RSI is below 50 and the MACD is about to move into the negative zone (red symbol), both of which are considered bearish signals.

This supports the outlook from the daily timeframe and suggests that BTC will continue to decline in the short term.

BTC / USDT 6-hour chart | Source: TradingView

Count waves

The number of waves indicates a possible ABC correction structure. This means that the downtrend has been corrected and the main trend is still up.

If wave A: C has a 1: 1 ratio, Bitcoin could be close to completing a correction. However, at a ratio of 1: 1.61, BTC can drop to $ 56,700.

BTC / USDT 2-hour chart | Source: TradingView

The slightly longer wavenumber suggests that all of the motion may be contained in an ascending parallel channel. BTC is now just above the channel’s support line.

So a rebound from this level would coincide with a 1: 1 Wave A: C ratio.

If the move continues, giving them a 1: 1.61 ratio, the proposed target of $ 56,700 will coincide with the 0.382 Fib retracement support near $ 56,700.

BTC / USDT 6-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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