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Bitcoin is recovering after a massive drawdown

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BREAKING! BITCOIN IS ONE MOVE AWAY FROM $1 TRILLION MARKET CAP!

Bitcoin is recovering after a massive drawdown

Bitcoin is recovering after a massive drawdown
CONTENT

  • Daily indicators give bearish signals, while short-term indicators are bullish.

  • Support is located at $ 32,100 and $ 29,050.

  • BTC rate is in phase C of corrective structure A-B-C.

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Bitcoin marked a local low on January 11 and has been growing since then. However, this is probably just a pullback after the previous correction, and not the beginning of a new bullish trend..

The current trend will be considered bullish as long as BTC trades above $ 36,701.

Bitcoin continues to rise

The bitcoin rate (BTC) formed a local minimum on January 11 at $ 30,261, after which it began to strengthen. This low coincides with the 0.382 Fib level of the retracement of the entire bullish move. It is worth noting that this rebound was preceded by strong signals of hidden bullish divergence on the RSI.

Bitcoin is recovering after a massive drawdown

Despite the rebound, technical indicators are still bearish. MACD is steadily declining, and the Stochastic Oscillator has formed a bearish crossover.

If the BTC rate reverses, the next nearest support area will come into play at $ 29,050.

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MTC schedule. Source: TradingView

Possible rebound

On the 6-hour chart, Bitcoin has advanced above the 0.618 Fib level of the previous bearish retracement and is now approaching the 0.786 Fib level at $ 39,483. Here is the horizontal resistance..

Technical indicators are gradually becoming bullish.

Despite this, the current price movement still looks more like a correction, rather than the beginning of a new bullish move. The situation will change only if BTC makes a clean breakdown of the $ 39 483 resistance area.

MTC schedule. Source: TradingView

Bitcoin is recovering after a massive drawdown

There are no signs of weakness on the 2-hour chart so far. MACD and RSI indicators are growing.

In addition, the BTC rate is moving along the upward support line, which coincides with the minor support area of ​​$ 36,200.

As long as BTC is trading above this level, the trend will be considered bullish.

MTC schedule. Source: TradingView

Wave analysis

Judging by the results of the wave analysis, the BTC rate has probably completed the formation of the corrective structure A-B-C with the ratio of waves A: C as 1: 1. Since the price has not yet bounced, it can be assumed that wave C will expand to the 1.61 Fib level of wave A, where the price will peak at $ 42,505.

This will mean renewal of the historical maximum, however, this does not cancel the corrective nature of the current movement (flat correction pattern).

MTC schedule. Source: TradingView

Sub-wave analysis (red in the chart below) suggests that the BTC rate is inside the final 5th wave, which can be either extended or normal.

As long as trading is above the low of wave 4 at $ 36,717, we will expect the wave to continue to rally and expand..

Bitcoin is recovering after a massive drawdown

MTC schedule. Source: TradingView

Conclusion

As such, bitcoin is probably still correcting, however, the pullback to the north may continue as long as BTC is trading above $ 36,717.

You can read the previous Bitcoin forecast here.

Disclaimer: Trading cryptocurrencies carries a high level of risk and is not suitable for all investors. The opinions expressed in this forecast do not reflect the opinions of the editorial staff of BeInCrypto.

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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