Bitcoin failed to close the week of February 7-14 on a positive note, instead creating a candle with a long upper wick. However, the short-term indicators suggest that a trend reversal may be imminent.
Bearish weekly candle
After creating a bullish candle for the week of January 31-February 6, Bitcoin fell slightly the following week creating a bearish candle with a very long upper wick.
Measuring the full down move, the local high at $45,821 is very close to the 0.382 retracement FIb resistance at $46,700, which is also a horizontal resistance area.
Therefore, it should act as a key resistance level for now.
BTC/USDT weekly chart | Source: TradingView
Technical indicators
The daily chart shows Bitcoin being rejected by the 0.618 Fib retracement resistance level (red symbol) as the recent part of the down move is measured. This resistance stands at $44,900.
Technical indicators are showing some bullish signs. This is particularly evident with the RSI, which has risen above 50. This level is considered a threshold that indicates whether the trend is bullish or bearish.
Similarly, the MACD is rising but has not yet entered positive territory. This would be another sign that the trend is bullish.
BTC/USDT daily chart | Source: TradingView
The six-hour chart shows Bitcoin falling back into an ascending parallel channel. Previously, the channel contained price action from January 24th to a February 8th price breakout.
Currently, Bitcoin is trading right at the midline of the channel, which is expected to provide support.
In contrast to the daily timeframe, both the MACD and the RSI offer neutral readings.
BTC/USDT 6 hour chart | Source: TradingView
The two hour chart is slightly more bullish.
Besides trading right in the middle of the channel, both the RSI and MACD produced significant bullish divergences (green line). This is an event that often precedes strong bull moves.
BTC/USDT 2 hour chart | Source: TradingView
Count waves
The most likely number of long-term waves shows that BTC has bottomed out. The short-term wave count (red) shows that BTC has completed the fourth wave of an upside impulse. The number of partial waves is shown in black.
The low of February 14th was set right at the 0.5 Fib retracement level when full wave three (white) was measured and for partial waves A and C 1:1.61, a level considered for soil formation is suitable.
BTC/USDT 2 hour chart | Source: TradingView
If the fifth wave has started, the most likely target for the top of the move is estimated between $47,625 and $47,912. This range was found using the length of wave one and using the external Fib retracement level of 1.61 on wave four.
After that, BTC could correct in the short/medium term.
BTC/USDT 2 hour chart | Source: TradingView
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.
Join CoinCu Telegram to keep track of news:Â https://t.me/coincunews
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Author
Bitcoin failed to close the week of February 7-14 on a positive note, instead creating a candle with a long upper wick. However, the short-term indicators suggest that a trend reversal may be imminent.
Bearish weekly candle
After creating a bullish candle for the week of January 31-February 6, Bitcoin fell slightly the following week creating a bearish candle with a very long upper wick.
Measuring the full down move, the local high at $45,821 is very close to the 0.382 retracement FIb resistance at $46,700, which is also a horizontal resistance area.
Therefore, it should act as a key resistance level for now.
BTC/USDT weekly chart | Source: TradingView
Technical indicators
The daily chart shows Bitcoin being rejected by the 0.618 Fib retracement resistance level (red symbol) as the recent part of the down move is measured. This resistance stands at $44,900.
Technical indicators are showing some bullish signs. This is particularly evident with the RSI, which has risen above 50. This level is considered a threshold that indicates whether the trend is bullish or bearish.
Similarly, the MACD is rising but has not yet entered positive territory. This would be another sign that the trend is bullish.
BTC/USDT daily chart | Source: TradingView
The six-hour chart shows Bitcoin falling back into an ascending parallel channel. Previously, the channel contained price action from January 24th to a February 8th price breakout.
Currently, Bitcoin is trading right at the midline of the channel, which is expected to provide support.
In contrast to the daily timeframe, both the MACD and the RSI offer neutral readings.
BTC/USDT 6 hour chart | Source: TradingView
The two hour chart is slightly more bullish.
Besides trading right in the middle of the channel, both the RSI and MACD produced significant bullish divergences (green line). This is an event that often precedes strong bull moves.
BTC/USDT 2 hour chart | Source: TradingView
Count waves
The most likely number of long-term waves shows that BTC has bottomed out. The short-term wave count (red) shows that BTC has completed the fourth wave of an upside impulse. The number of partial waves is shown in black.
The low of February 14th was set right at the 0.5 Fib retracement level when full wave three (white) was measured and for partial waves A and C 1:1.61, a level considered for soil formation is suitable.
BTC/USDT 2 hour chart | Source: TradingView
If the fifth wave has started, the most likely target for the top of the move is estimated between $47,625 and $47,912. This range was found using the length of wave one and using the external Fib retracement level of 1.61 on wave four.
After that, BTC could correct in the short/medium term.
BTC/USDT 2 hour chart | Source: TradingView
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.
Join CoinCu Telegram to keep track of news:Â https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
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