Bitcoin Technical Analysis December 17th

Bitcoin (BTC) failed to hit the short-term channel resistance line on December 16 and could fall towards its support line before a final breakout.

Day outlook

Bitcoin fell slightly on December 16, but is still trading within the bullish range of the previous day.

More importantly, a strong bullish divergence is forming in both the RSI and the MACD. This is a sign that often anticipates an upward trend reversal.

Therefore, as long as the divergence is intact, it is likely that BTC will start a rally soon.

BTC / USDT daily chart | Source: TradingView

current model

The six-hour chart shows that BTC has been trading in a descending parallel channel since hitting an all-time high in November.

It is currently trading near the center line of the channel.

Both the MACD and RSI have created significant bullish divergence, a sign that an eventual breakout is expected.

If successful, the closest resistance is found between $ 52,450 and $ 55,650. This zone is created by the 0.382-0.5 Fib resistance levels.

BTC / USDT 6-hour chart | Source: TradingView

Finally, the hourly chart is showing another descending parallel channel that has formed since December 7th.

On December 16, BTC was unable to reach the resistance line (red circle) before falling below its center line.

Therefore, the price could retest the support line of the channel at $ 45,000 before breaking out.

Hourly BTC / USDT Chart | Source: TradingView

Count waves

The short-term wave count shows that BTC is still correcting within wave B of the ABC correction.

The most likely level for the end of wave B would be between $ 45,900 and $ 44,200, an area created by the 0.618-0.786 fib retracement support (black).

After that, wave A: C will have a 1: 1 ratio, resulting in a high near $ 55,700. However, this depends on the exact bottom of wave B.

The long-term wave count also suggests that an upward move is likely.

Hourly BTC / USDT 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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