Bitcoin (BTC) is trading near the December lows but is showing strong signs of a possible bullish reversal.
Bullish divergence suggests a possible rally
On December 23rd, Bitcoin broke the descending resistance line that had formed since the all-time high on November 10th. This indicates that the previous fix has been completed.
It then fell back to pre-breakout levels near $ 46,000. This move is likely to create a double bottom, often viewed as a bullish reversal pattern.
In addition, both the MACD and RSI created significant bullish divergences. This is a bullish signal where the price decline is not accompanied by a decline in momentum.
In the past, this divergence has catalyzed tremendous upward movements.
The next resistance is between $ 52,400 and $ 58,750 generated by the 0.382-0.618 Fib resistance levels.
BTC / USDT daily chart | Source: TradingView
Short-term reach
The six-hour chart shows that Bitcoin has been trading in a range of $ 46,300 to $ 51,800 since early December, was recently turned down from the resistance area of ​​the range on December 27th and has been moving down since then.
As of December 30th, Bitcoin has been trading within the range’s support area. Similar to the daily timeframe, the RSI is forming a significant bullish divergence. As a result, a move towards the midline of the range and possibly the highs of the range is expected.
BTC / USDT 6-hour chart | Source: TradingView
Count waves
The most likely wavenumber shows that BTC is still in a corrective pattern. It is currently trading just above the retracement support at FIb 0.618, which is likely to help push the price back up.
If the W: Y wave has a 1: 1 ratio, which is common with such structures, BTC can hit a local high of $ 55,850. This high is created within the Fib resistance range described above.
BTC / USDT 2-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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Bitcoin Technical Analysis January 4th
Bitcoin (BTC) is trading near the December lows but is showing strong signs of a possible bullish reversal.
Bullish divergence suggests a possible rally
On December 23rd, Bitcoin broke the descending resistance line that had formed since the all-time high on November 10th. This indicates that the previous fix has been completed.
It then fell back to pre-breakout levels near $ 46,000. This move is likely to create a double bottom, often viewed as a bullish reversal pattern.
In addition, both the MACD and RSI created significant bullish divergences. This is a bullish signal where the price decline is not accompanied by a decline in momentum.
In the past, this divergence has catalyzed tremendous upward movements.
The next resistance is between $ 52,400 and $ 58,750 generated by the 0.382-0.618 Fib resistance levels.
BTC / USDT daily chart | Source: TradingView
Short-term reach
The six-hour chart shows that Bitcoin has been trading in a range of $ 46,300 to $ 51,800 since early December, was recently turned down from the resistance area of ​​the range on December 27th and has been moving down since then.
As of December 30th, Bitcoin has been trading within the range’s support area. Similar to the daily timeframe, the RSI is forming a significant bullish divergence. As a result, a move towards the midline of the range and possibly the highs of the range is expected.
BTC / USDT 6-hour chart | Source: TradingView
Count waves
The most likely wavenumber shows that BTC is still in a corrective pattern. It is currently trading just above the retracement support at FIb 0.618, which is likely to help push the price back up.
If the W: Y wave has a 1: 1 ratio, which is common with such structures, BTC can hit a local high of $ 55,850. This high is created within the Fib resistance range described above.
BTC / USDT 2-hour 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.
Follow the Youtube Channel | Subscribe to telegram channel | Follow Facebook page
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