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Bitcoin rate plunged under $ 30,000, but recovered

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Bitcoin rate plunged under $ 30,000, but recovered

Bitcoin rate plunged under $ 30,000, but recovered
CONTENT

  • Support is located at $ 29,000 and $ 26,000

  • Daily indicators are giving bearish signals

  • BTC likely completed the first phase of a long-term corrective structure

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The bitcoin (BTC) rate sank significantly on January 21, briefly dipping below the $ 30,000 mark. Despite this drop, BTC may rise in the short / medium term.

Bounce off support

Course bitcoin (BTC) fell $ 5,000 + yesterday, dropping from a high of $ 35,600 to lows around $ 30,000.

Bitcoin rate plunged under $ 30,000, but recovered

However, on January 22, Bitcoin managed to resume its growth. The price bounced off the 0.5 Fibo level by $ 29,000 and is now in the process of forming a bullish candlestick with a long lower wick.

Despite this rebound, technical indicators persist in giving strong bearish signals.

MACD went into the red zone, the daily RSI dipped below 50, and the Stochastic Oscillator formed a bearish crossover.

If the BTC rate breaks through the support area of ​​$ 29,000, the next support will meet the pair only at $ 26,000 (Fib. 0.618 of the correction of the entire bullish move).

Will Bitcoin be able to gain strength for new growth? Share your opinion in the comments and join the discussion in our Telegram channel!

MTC schedule. Source: TradingView

Wave analysis

In our previous analyzes, we have already noted that a bearish breakdown of the $ 34,000 support area and the symmetrical triangle may confirm that BTC is heading south, possibly towards $ 29,000..

Indeed, yesterday’s fall ultimately drove the price to the 0.5 Fibo level at $ 29,000. As a result, the X: Y wave ratio (orange) was 1: 1.

Bitcoin rate plunged under $ 30,000, but recovered

Schedule MTC. Source: TradingView

However, the results of the long term analysis remain bearish. Thus, the probability is extremely high that we observed only the first phase of the corrective structure..

This means that BTC may eventually head south, most likely towards $ 22,969 (0.5 Fibo correction of the entire long-term bullish move).

However, this price movement can theoretically take many possible forms, and it is too early to guess what kind of pattern we will actually get. Nevertheless, before the downtrend resumes, a significant price rebound is highly likely..

Schedule MTC. Source: TradingView

Short-term dynamics

Weak signs of a bullish reversal can be seen on the short-term charts. So, this is indicated by the bullish divergence on the RSI. However, this reversal has not yet been confirmed..

Strong price fixation above the $ 31,400 area could confirm the start of such a reversal and indicate a bullish BTC tone..

In addition, strong support lies at $ 28,200. Even if bitcoin’s gains are rebuffed and the price rebounds to form a small declining low, this level should provide a good springboard to reverse..

Bitcoin rate plunged under $ 30,000, but recovered

MTC schedule. Source: TradingView

Conclusion

Thus, the bitcoin rate has probably completed the first phase of the corrective price structure and will now start a vigorous rebound. This forecast will be confirmed if the price fixes above $ 31,400.

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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