Bitcoin (BTC) hit a new all-time high in the week of November 8-14, but failed to hold profits and fell over the weekend.

Weekly outlook

The weekly chart shows that despite the initial upward movement, BTC created a weekly candle with a long wick above it (red symbol). This shows that the pressure to sell is very strong at the top.

However, BTC is still trading above the $ 59,500 zone, which is resistance around its all-time high since May, and the area has acted as resistance during the rally and is currently held as support.

Technical indicators in the weekly timeframe are bullish. The MACD, which is made up of the short and long-term moving averages (MAs), is in positive territory and rising. This means that the short-term MA is rising faster than the long-term MA and is seen as a bullish signal.

The RSI, a momentum indicator, is above 50 and rising. This is also considered a bullish sign and usually occurs during strong bullish moves.

While the price action is unclear, the technical indicators of the weekly timeframe are bullish.

BTC / USDT weekly chart | Source: TradingView

Continue to decrease

The daily chart shows that BTC has fallen since November 10th when it hit a new all-time high of $ 69,000.

The downward move was preceded by a bearish divergence (in blue) in both the RSI and the MACD. This bearish trend occurs when a rise in price is not accompanied by an increase in momentum and usually occurs before the trend reverses on the downside. The greater the divergence, the more reliable the signal.

Using the Fib level, the next support is at $ 57.854. This is the short term fib retracement level of 0.382 (white).

There is stronger support between $ 53,700 and $ 54,350 created by the short term Fib retracement support of 0.5 and the long term Fib level of 0.382 (black). When BTC falls back into this zone, this is a place for BTC to recover.

BTC / USDT daily chart | Source: TradingView

The six-hour chart shows that the bulls are actively defending the horizontal support area of ​​$ 63,500, which is also in line with the rising support line.

Due to the convergence of support levels, a breakdown of the line / range is an important bearish sign and could result in a much lower price.

BTC / USDT 6-hour chart | Source: TradingView

The shorter-term 30 minute chart is showing resistance at $ 66,660. This is the 0.618 fib retracement resistance.

Unless BTC exceeds this level, the correction cannot be considered complete.

BTC / USDT 30-minute chart | Source: TradingView

Count waves

There are currently two possible wave counts. Both point to further short-term downward movement.

The first wave count shows that BTC has completed the first wave (orange) of a bullish five-wave pulse and is currently correcting within the second wave. The number of partial waves is displayed in orange.

The first potential target for the bottom of the second wave is $ 57,750 and the second is $ 54,300.

BTC / USDT 6-hour chart | Source: TradingView

The second wave number shows that BTC is currently in wave 2 (orange) and has been in that wave since the October 20th high. In this case, BTC is in an unevenly flat correction. This is a correction where wave C (black) doesn’t move below the bottom of wave A (black). Hence it is usually contained in an ascending parallel channel.

In that capacity, BTC could only fall to $ 60,000 before rising again.

BTC / USDT 6-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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