After Bitcoin (BTC) began to bounce back on November 25, it fell significantly the next day, returning to weekly lows.

As of November 19, BTC has been hovering above the USD 56,500 support. This is both horizontal support and 0.382 fib retracement support.

Yesterday technical indicators started showing some bullish signs.

After 15 consecutive lower momentum bars, the MACD finally made a higher bar (green symbol). This is a sign that the short-term trend is turning up.

In addition, the RSI has created a bullish divergence (green line). This is a bullish signal where the price decline is not accompanied by a decrease in momentum.

However, BTC reversed this trend on November 26th and is in the process of creating an engulfing bearish candle (red symbol). This is a bearish candle that negates all of the previous day’s profit the next day. There are still more than 14 hours to the end of the daily candle, but today’s start looks very bearish.

If there is a breakdown, the next support is found at $ 53,250.

BTC / USDT daily chart | Source: TradingView

Short term volatility

The six-hour chart shows that BTC has fallen since November 19th along with a descending resistance line, which is a sign that BTC is correcting.

Additionally, BTC hit a lower high versus price on November 20th. This is considered a bearish sign as it did not have enough strength to hit the previous high.

BTC / USDT 6-hour chart | Source: TradingView

The shorter-term two-hour chart shows BTC trading within a symmetrical triangle and very close to its support line, which coincides with the horizontal support area of ​​$ 56,500.

Therefore, breaking this level could accelerate the decline.

BTC / USDT 2-hour chart | Source: TradingView

Count waves

The wave count shows that BTC is in wave C (red) of the ABC correction. This means that once the correction is complete, the uptrend is likely to resume.

The number of partial waves is displayed in pink. It shows that BTC is in the fifth wave of a correction, which is the final phase.

There is strong support area at $ 53,250-53,800 created by:

• Length of sub-wave one (pink)
• External fib retracement of lower wave four (white)
• Length of shaft A (red)

These levels are also consistent with the long-term Fib support level described above. Hence, BTC is expected to hit a local low in this area before reversing.

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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