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Bitcoin failed to close above $ 34,000 resistance

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Bitcoin failed to close above $ 34,000 resistance

Bitcoin failed to close above $ 34,000 resistance
CONTENT

  • Bitcoin struggles with long- and short-term downtrend resistance lines.

  • Support is located at $ 29,000.

  • BTC rate is trading in wave C of correction A-B-C.

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Bitcoin (BTC) consolidated on February 1, but remained to close below the $ 34,000 resistance area and downtrend line.

Perhaps the cryptocurrency is still in a corrective structure that will ultimately cause the decline to resume.

Bitcoin fights resistance

Bitcoin failed to close above $ 34,000 resistance

Course bitcoin (BTC) tried to exceed the opening price on Feb 1, but ultimately failed to launch a significant bullish move yesterday.

It is important for the pair to gain a foothold above the line of downtrend resistance built from the all-time high reached on January 8.

Technical indicators are still giving bearish signals.

Although the MACD is trying to make a bullish reversal (green arrow on the chart), the RSI remains below 50, and the Stochastic Oscillator is also declining.

The nearest support area is located at $ 29,000 and further around $ 26,000.

Do you believe in the continued bullish potential of BTC? Share your opinion in the comments and join the discussion in our Telegram channel!

MTC schedule. Source: TradingView

Short term resistance

On the 2-hour chart, another line of downward resistance stands out, along which the bitcoin rate has been moving for the last two days.

The MACD indicator is gradually beginning to turn to the north, and the RSI index is growing, but so far the dynamics of BTC is more like a correction than the beginning of a full-fledged growth.

Bitcoin failed to close above $ 34,000 resistance

Even in the case of a successful clean breakdown of this resistance line, then the BTC rate will face resistance at $ 35 350 and $ 36 108 (Fibo levels 0.5 and 0.618 of the correction). 

Until we see a recovery in the price above the 0.618 Fib level at $ 36,100, we will tend to believe that the current BTC growth is corrective..

MTC schedule. Source: TradingView

Wave analysis of bitcoin

Wave analysis results suggest Bitcoin is in wave C of the A-B-C corrective structure (white).

If the ratio of waves A: C is the usual 1: 1 for such corrections, this means that Bitcoin will reach a minimum of $ 25,719. This coincides with the support line of a potential descending parallel channel and the Fibo level of 0.5, noted by us earlier.

If the duration of waves A and C are also equal, then the BTC rate will reach a minimum on February 11.

Underwave analysis is shown in orange on the chart. He suggests that BTC is in sub-wave 2.

Schedule MTC. Source: TradingView

A more detailed analysis shows that Bitcoin may have had one bullish move towards $ 35,300 left, after which the price should resume its decline..

Bitcoin failed to close above $ 34,000 resistance

MTC schedule. Source: TradingView

Conclusion

Thus, the bitcoin price is probably in the final phase of a corrective structure that will eventually lead it to the $ 26,000 area..

You can read the previous Bitcoin forecast here.

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

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