Bitcoin (BTC) fell significantly on November 18, hitting a low of $ 55,600. However, it is likely near the end of the correction.

BTC has been falling since it hit an all-time high of $ 69,000 on November 10th. On Nov 17th, it bounced off the channel’s support line and the $ 59,700 horizontal support area.

The recovery was short-lived, however, and BTC broke both the channel and support area on Nov. 18, resulting in a low of $ 55,600 the next day.

BTC / USDT 6-hour chart | Source: TradingView

Has BTC already bottomed out?

Looking at the number of waves and the fib level, the bottom is very close.

BTC appears to be in the C section of the ABC correction structure (black). This is the final part of the correction after which an upward move is likely.

More interestingly, there is a very strong support area at $ 54,500 – $ 56,300. This is the .382 fib retracement support (white) and will provide wave A: C with a ratio of 1: 1.61. The latter is extremely important as the A: C wave usually has a 1: 1 or 1: 1.61 ratio. Since the 1: 1 ratio is not maintained, the 1: 1.61 ratio is used.

BTC / USDT 6-hour chart | Source: TradingView

This possibility is supported by a look at the MACD and the RSI. Both created bullish divergences. This is the case when the price is falling but the technical indicators are not falling. This usually precedes a trend reversal.

BTC / USDT 2-hour chart | Source: TradingView

Long-term wave counting

Long-term wave counting shows that all of the move since July has been a large 1-2 / 1-2 bullish pattern. This means that the rate of increase is expected to accelerate as BTC completes the current correction.

BTC is currently in sub-wave two (yellow) of wave three (white). When it does, the third wave of wave three is usually the sharpest of the entire upward wave. This should lift the price to a new all-time high.

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.

SN_Nour

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