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Bitcoin rate continues to consolidate over $ 36,000

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🔋 Morning Bitcoin update 8th Feb 2021 – Trend Neutral $38,000 & $36,000 support, $42,000 resistance

Bitcoin rate continues to consolidate over $ 36,000

Bitcoin rate continues to consolidate over $ 36,000
CONTENT

  • Bitcoin trades within a symmetrical triangle

  • Daily indicators are bearish, but short-term indicators are bullish

  • BTC is likely in wave X of the W-X-Y correction

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Bitcoin price has been strengthening since January 12, consolidating inside a symmetrical triangle above $ 36,000.

BTC is expected to face resistance around $ 37,700. A break above $ 40,112 will demonstrate that the currency is still maintaining bullish momentum rather than correcting..

Bitcoin rate continues to consolidate over $ 36,000

Bitcoin keeps going north

Course bitcoin (BTC) rebounded on January 11 from the support represented by the 0.382 Fib level at $ 32,124. Since then, the price has been rising. This rally looks erratic and slow and looks more like a correction than a bullish momentum.

Despite the hidden bullish divergence in the RSI, the remaining technical indicators on the daily chart are giving bearish signals. Stochastic Oscillator has formed a bearish crossover, and MACD is almost in the red zone.

If BTC makes a bearish breakout, the next support will meet it at $ 29,080 (Fib 0.5 retracement).

MTC schedule. Source: TradingView

Symmetrical triangle

On the 6-hour chart, the BTC rate has been trading within a symmetrical triangle since January 4. The point of convergence of the resistance and support lines is getting closer, so in the near future the market will have to make an important decision regarding the further direction of movement.

Strong resistance is marked at $ 37,709 (Fibo 0.618 retracement level, horizontal resistance and descending triangle resistance line).

Technical indicators on the short-term chart are bullish, however bearish signals on longer timeframes prevent us from predicting a bullish breakout with confidence..

Bitcoin rate continues to consolidate over $ 36,000

MTC schedule. Source: TradingView

Wave analysis

The results of the wave analysis suggest that the BTC rate is trading within the complex W-X-Y correction (orange on the chart), in which wave X is represented by a triangle. This is in line with the results of a longer-term analysis, which suggests that BTC is correcting growth that began in September 2020..

A bearish breakout of the triangle could push the market back to the aforementioned 0.5 Fibo level at $ 29,000 and possibly to 0.618 Fibo support at $ 26,000. 

Underwave analysis is shown in black on the chart. Absorption of the low of wave B at $ 33,822 will confirm our assumptions.

Schedule MTC. Source: TradingView

Since there is almost no doubt about the presence of a triangle on the chart, the only other probability remains that this is the fourth wave, which will be broken in the north direction, which will push BTC in the direction of $ 50,000.

However, this is at odds with the results of long-term analysis. Until we see the absorption of the high of the B sub-wave at $ 40 112, we will consider this scenario unlikely..

MTC schedule. Source: TradingView

Bitcoin rate continues to consolidate over $ 36,000

Conclusion

Thus, Bitcoin is expected to gradually rise to $ 37,700. A break above $ 40,112 will demonstrate that BTC is still in bullish momentum, while a drop below $ 33,822 will confirm a bearish trend..

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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