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Bitcoin course prepares for a new storm of resistance

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BITCOIN Price Prediction: EMERGENCY!!! DUMP on BTC Imminent?! // Daily Crypto Technical Analysis

Bitcoin course prepares for a new storm of resistance

Bitcoin course prepares for a new storm of resistance
CONTENT

  • Bitcoin is trading above long-term support of $ 10,200

  • Technical indicators on the daily chart paint a bullish picture

  • IESM started impulsive bullish wave structure

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Bitcoin (BTC) continues to trade above important long-term support and appears to be gearing up for a fresh test of the $ 11,200 level, a breakout of which will confirm an uptrend.

Weekly consolidation

The weekly chart shows that BTC continues to trade above the long-term support of $ 10,200. After confirming the status of this level with the lower wick two weeks ago, the first cryptocurrency spent last week in a consolidation mode above this level. At the moment, the dynamics is like preparing to retest the previous resistance, which will eventually turn into support.

Bitcoin course prepares for a new storm of resistance

Technical indicators paint a bullish picture. The RSI is above the 50 level and is starting to rise, just like the Stochastic Oscillator. Bearish divergence signals are not observed.

BTC Chart by TradingView

Important resistance

The daily chart shows signs of buying pressure, including the bullish engulfing candle formed on September 24 and the long lower wick from October 2. At the same time, BTC will have to go through a strong resistance of $ 11,200, where the 0.618% Fibonacci retracement level and the previous support are located, which also coincides with a potential downward resistance line connecting the last two declining highs.

Until the quotes break this level, the bullish trend is considered unconfirmed.

BTC Chart by TradingView

Technical indicators point to a bullish scenario:

    Bitcoin course prepares for a new storm of resistance
  • MACD is rising and has almost reached positive territory.
  • Stochastic RSI has formed a bullish crossover and is heading north.

At the same time, the RSI is under the 50 mark, which acts as a resistance.

But the big picture shows that the probability of a breakout of the $ 11 220 level is high..

BTC Chart by TradingView

Short-term dynamics

On the 2-hour charts, you can see that the quotes bounced from the 0.618% retracement level relative to the recent fall, confirming the previous upward support line.

If the price fails to break this level, BTC may drop to the $ 10,500 area before trying to break again. Otherwise, the price will break through the resistance and continue to move north.

BTC Chart by TradingView

Bitcoin course prepares for a new storm of resistance

Wave analysis

BTC probably embarked on a bullish impulsive wave structure on September 9 (orange in the chart) and is now in its third wave stage.

Within wave 3, the price has completed sub-waves 1 and 2 (blue) and the beginning of the third, which may end in the region of $ 11 985- $ 12 314.

BTC Chart by TradingView

So, Bitcoin may be completing its correction and preparing to resume its growth. Break of $ 11,200 level confirms bullish scenario.

The previous analysis of bitcoin can be read here.

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