Bitcoin (BTC) has hit the Fib support area of ​​$ 45,800 to $ 47,000. For the relief rally to continue, it is important to hit a higher low in this area.

Day outlook

BTC has been falling since December 7th when it hit a high of $ 51,936 (red symbol). The high came very close to the 0.382 fib retracement resistance at $ 52,400. Additionally, it previously confirmed the rising support line as resistance.

Aside from the rejection, the daily timeframe technical indicators are all in decline.

The MACD, which is made up of the short and long-term moving averages (MAs), is falling and is in negative territory. This means that the short-term MA is falling faster than the long-term MA. Although its histogram produced a higher momentum bar (green symbol) on December 6th, it has continued to decline since then.

The RSI, a momentum indicator, is also bearish and is below the 50 mark. A reading below 50 is generally considered bearish.

Hence the indicators from the daily timeframe are bearish. This outlook is reinforced by the bearish engulfing candle of December 9th, a bearish candle in which the entire movement of the previous day is covered by a large bearish real body.

BTC / USDT daily chart | Source: TradingView

Short term outbreak

The hourly chart shows that BTC broke below a rising parallel channel in December.

It continued to decline to hit a low of $ 47,320, just above the 0.5 fib retracement support of $ 47,000.

It’s important for BTC to hit higher low within the 0.5-0.618 Fib retracement support area ($ 45,800-47,000) if it is to reverse the trend.

Hourly BTC / USDT Chart | Source: TradingView

BTC has also been moving along a descending resistance line since December 7th and last turned down the price on December 9th.

Until the price crosses this line, the short-term trend cannot be considered bullish.

Hourly BTC / USDT Chart | Source: TradingView

Future movement

The highest number of likely waves indicates that the rally is part of sub-wave B (black) of longer-term wave two. It is likely that BTC will be pushed back into the USD 58,800 resistance area, which corresponds to the 0.618 fib retracement resistance.

The number of small partial waves is shown in red.

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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