Bitcoin’s uptrend was temporarily halted on October 12 when the price plunged to the $ 55,000 level. BTC has rebounded slightly since then, but is quickly approaching the peak of an upward move if it hasn’t already.

Day outlook

On October 12, BTC hit a high of $ 57,839 and plunged deep into the resistance area of ​​$ 57,200.

However, it was rejected (red icon) and has dropped significantly. The rejection is a sign that the price has failed to break above the $ 57,200 resistance area. This is the final resistance before rising to an all-time high.

Despite the decline, the technical indicators remain optimistic.

MACD is in positive territory and increasing. However, the RSI shows some signs of weakness (red circle). It has just fallen below 70, which means that while the trend is still bullish, it has shown the first signs of losing momentum and is likely to turn bearish.

The next supports are at $ 46,650 and $ 43,250. These are the 0.382 and 0.5 fib retracement support levels (white) and they are expected to support the price if it continues to decline.

BTC / USDT daily chart | Source: TradingView

Potential pullback

The six-hour chart is showing blatant weakness. Both the RSI and the MACD produce bearish divergence (blue line).

This event suggests that the rise in prices will not be accompanied by similar upward momentum. Conversely, the momentum decreases when the price rises. It remains to be seen whether the RSI creates a hidden bullish divergence (yellow line) that would invalidate the previous bearish divergence.

If the downtrend continues, there will be another confluence of support at $ 46,650. Not only is this the .382 fib retracement support, but it’s also the centerline of the parallel channel that BTC previously broke out of (green circle).

BTC / USDT 6-hour chart | Source: TradingView

Count waves

The most likely wavenumber indicates that there is a decline in the last part of the fourth wave contained in an ascending parallel channel.

In this case, the next upward move is the last phase before the correction.

BTC / USDT 2-hour chart | Source: TradingView

The second possibility is that BTC has peaked and is currently correcting. This is less likely because the waves are out of proportion to one another as they are all very different in length.

BTC / USDT 2-hour chart | Source: TradingView

The number of long-term waves shows that BTC forms waves 1-2 / 1-2. This means that it can increase significantly after the adjustment is complete.

BTC / USDT daily 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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