Bitcoin (BTC) has hit a double floor and could soon confirm it with a sharp jump towards resistance.
BTC has been down since it hit an all-time high of $ 69,000 on November 10th. So far, the decline has led to a low of $ 55,317, which was hit on November 23rd.
Currently, BTC is trading just above the USD 56,500 support area. This is both horizontal support and 0.382 fib retracement support (white).
In this, BTC made a double bottom, which is often viewed as a bullish pattern. Additionally, this pattern has been linked to a bullish divergence in the RSI (green), which often precedes a trend reversal.
Despite the bullish divergence, both the RSI and the MACD are bearish.
The RSI falls and below the 50 mark. The MACD is also bearish and is in negative territory. This means that the short-term trend is weakening from the long-term trend and is considered a bearish sign.
BTC / USDT daily chart | Source: TradingView
Technical indicators of the six-hour chart support the outlook of the daily chart with an even more pronounced bullish divergence. This further increases the possibility that the model will work.
There is strong resistance at $ 60,700 created by:
A break above this line confirms the correction is complete.
BTC / USDT 6-hour chart | Source: TradingView
The number of waves shows that BTC has completed an ABC correction (red), with wave A: C having a ratio of 1: 1.61. This relationship is very common in such structures.
Once the correction completes, BTC will resume its upward momentum as the trend will likely still be bullish.
The number of long-term waves (black) is also trending upwards, which shows that BTC is in a 1-2 / 1-2 large wave formation.
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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