Bitcoin (BTC) threatens to fall below the short-term horizontal and diagonal support, which could trigger a sharp decline.
BTC has been trading on an ascending parallel channel since October 20th. It was recently rejected by that channel’s resistance line on November 10th and has started to decline. This resulted in a low of $ 58.373 on Nov. 17. The low was hit right in the $ 59.700 horizontal support area.
It remains unclear whether BTC will break below or bounce off the channel’s support line, which currently coincides with the $ 59,700 support.
The November 17th six hour candle (green symbol) looks extremely bullish as it covers all of the decline from the previous six hour candle. Additionally, it happened right within the $ 59,700 horizontal support area, which added to its significance.
However, bearish technical indicators favor the continuation of the decline. MACD has entered the negative zone and is sloping down. Likewise, the RSI, a momentum indicator, is below 50 and threatens to drop below 30.
As a result, the six hour timeframe gives ambiguous signals.
BTC / USDT 6-hour chart | Source: TradingView
The 2 hour chart offers a slightly more bullish outlook, driven by the MACD and RSI.
Both are turning up and the MACD is about to enter the positive zone while the RSI is below 50.
On a short term upside move, the closest resistance is between $ 62,400 and $ 63,300. These goals are the 0.5-0.618 Fib resistance range.
BTC / USDT 2-hour chart | Source: TradingView
The 30-minute chart shows that BTC is still moving along a descending resistance line.
In order to initiate a potential upward movement, it must therefore first break out of this line.
BTC / USDT 30-minute chart | Source: TradingView
The daily chart shows BTC trading just above the 0.382 fib retracement support at $ 57,850.
When a breakdown occurs, the next support zone is between $ 53,700 and $ 54,300. It consists of 0.382 long-term fib retracement supports (black) and 0.5 short-term fib supports (white).
After that, BTC will continue the upward trend.
BTC / USDT daily 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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