Bitcoin (BTC) has risen sharply from its January 10 lows and is showing some signs that the correctional phase is over.
Bitcoin has been trading on a descending parallel channel since December 27th. This creates a long lower wick, which is often taken as a sign of pressure to buy.
The next resistance is at $ 45,850, where it previously served as support. This is the 0.5 fib retracement resistance and the horizontal resistance range.
BTC / USDT 6-hour chart | Source: TradingView
Technical indicators in the daily timeframe give bullish signals. This is particularly noticeable in the MACD, where its histogram has produced a very significant bullish divergence (green line). This is a sign that often anticipates upward movements.
In addition, consecutive higher momentum bars (green symbol) together with a bullish closing price give bullish reversal signals.
BTC / USDT daily chart | Source: TradingView
Long-term waveforms still have some valid possibilities.
However, the short-term wave count shows that the pullback from the all-time high is complete (black). The number of partial waves is displayed in red.
BTC / USDT 4-hour chart | Source: TradingView
Due to the breakout above the channel and the deep retracement of potential subwave 4 (red), the current rally does not appear to be part of subwave 4.
So the most likely scenario suggests the correction has completed and BTC bottomed out on Jan 10 after a low of $ 39,558.
BTC / USDT 2-hour chart | Source: TradingView
You can see the Bitcoin 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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