Categories: Market

Bitcoin Technical Analysis November 22nd

Bitcoin (BTC) likely completed a corrective structure following the November 19th rally. It is imperative that the USD 56,500 support area hold.

BTC fell significantly for the week of November 15-21, creating a bearish engulfing candle. This is a bearish candlestick pattern where all of the previous week’s profit is covered by the next decline.

Despite the ongoing uptrend, BTC is still trading just below the long-term support area of ​​$ 59,000 and is currently trading at $ 57,500. The same area previously acted as resistance at the February-April all-time high and is now expected to act as support.

BTC / USDT weekly chart | Source: TradingView

Short term movement

The daily chart shows BTC trading above the horizontal support at $ 56,500. This is the 0.382 fib retracement support (in white) when measuring the most recent part of the upside move.

On November 19th, BTC bounced off this support area (green icon) and is currently retesting it.

Despite the near-term recovery, the technical indicators are still bearish as both the MACD and RSI are falling.

The decline is particularly related to the RSI, which has fallen below 50 (red circle). The RSI is a momentum indicator and the 50 line is often viewed as a benchmark for determining whether the trend is bullish or bearish. The RSI previously rose above 50 on September 29th (green circle) in the initial phase of the rally. In order to continue the uptrend, it is necessary to recapture the 50 line.

If there is a breakdown, the next support is found at $ 53,250. This is the 0.5 fib retracement support.

BTC / USDT daily chart | Source: TradingView

The six-hour chart shows that BTC is moving below a descending resistance line.

BTC / USDT 6-hour chart | Source: TradingView

Count waves

The wave count shows that the entire move since October 20th has been part of an ABC correction structure. Wave C has a usual ratio of 1: 1.61 to wave A for such structures.

As a result, BTC may have bottomed out locally and the correction is complete.

The long-term wave count shows that BTC is in a large 1-2 / 1-2 wave formation.

BTC / USDT 4-hour chart | Source: TradingView

The number of alternate waves is a bit more bearish as the November decline is wave A of the ABC structure.

However, this means that an upward move towards the $ 62,400-64,000 zone is yet to come before another decline occurs. The number of partial waves is displayed in red.

Hourly BTC / USDT Chart | Source: TradingView

You can see the BTC price Here.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

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

According to Beincrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

CoinX

Recent Posts

Gate.io Launches USDE Financial Products with Annualized Returns of Up to 54%, Ushering in a High-Return Era for Stablecoin Investments

Nov 18th, Panama - Gate.io, a global leader in digital asset trading, has officially unveiled…

40 minutes ago

Bitdeer Convertible Notes Worth $360 Million Offered for Expansion Efforts

The Bitdeer convertible notes offer a 42.5% conversion premium, allowing conversion into cash with the…

1 hour ago

Sui Foundation Enters into Strategic Partnership with Franklin Templeton Digital Assets

Grand Cayman, Cayman Islands, 22nd November 2024, Chainwire

2 hours ago

Best Cryptos to Invest in December 2024: Qubetics Surges Past $2.6M as Solana Records Big Whale Pump and Polkadot Aims for $6

Best Cryptos to Invest in December 2024: Qubetics surges past $2.6M, Solana’s whale pump ignites…

3 hours ago

Bitcoin Trader Turned $100M in His 20s—Now Reveals 5 Altcoins to Build a $50M Portfolio, With Memecoins Leading the Way!

As Bitcoin reaches unprecedented heights and the market surges, he's highlighting five altcoins poised for…

5 hours ago

Which Crypto Will Explode in the 2024-2025 Bull Run?

With the crypto market reaching new peaks, many are eager to discover digital currencies poised…

5 hours ago

This website uses cookies.