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Bitcoin sends conflicting technical signals

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Bitcoin Sending Contradicting Signals or Ready To Moon?! (BTC Technical Analysis)

Bitcoin sends conflicting technical signals

Bitcoin sends conflicting technical signals
CONTENT

  • Bitcoin trades within a parallel upward channel.

  • The price has formed a short-term triple top.

  • BTC is likely in the 3rd wave of a five-wave impulse structure.

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The bitcoin rate is trading within a parallel upward channel, forming a triple top. The direction of exit from this channel will determine the further dynamics of BTC .

Bitcoin sends conflicting technical signals

The bitcoin (BTC) rate marked a maximum of $ 13,235 on October 22 and has since traded within a parallel upward channel.

Yesterday the price fell sharply and almost broke through the support line of this channel. However, this was followed by a rebound, which returned the price to the middle of the channel..

At the time of writing the analysis, the price attacked strong resistance (highlighted on the chart with a red circle), formed by the median line of the channel and a possible downward resistance line built from the two previous highs.

A clean breakout of this level will be an important bullish signal and will aim the market for growth in the direction of the channel resistance line.

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Schedule BTC. Source: TradingView

Mixed technical indicators

Technical indicators on the 6-hour chart give bearish signals, but look very uncertain..

On the one hand, price has formed a pattern very much like a triple top, characterized by long upper wicks, a shooting star candlestick pattern, and a bearish engulfing candlestick. In addition, the RSI indicator signals a strong bearish divergence and the MACD is declining.

Bitcoin sends conflicting technical signals

On the other hand, we can note the hidden bullish divergence in the RSI, which can neutralize the bearish divergence signals.

Schedule BTC. Source: TradingView

The 2-hour chart shows moderately bullish signals. MACD started to rise, giving weak bullish divergence signals.

In this regard, the decisive factor that will determine the further direction of BTC will be the price behavior in the region of the channel’s median line, in particular, its successful bullish breakdown.

Schedule BTC. Source: TradingView

Wave analysis

It looks like BTC started a bullish impulse move (orange in the chart) on September 7 and is now inside the 3rd wave. The preliminary target of this wave is $ 14.360 (Fib level 3.61 of wave 1).

However, the underwave analysis is less clear. Most likely scenarios indicate that the price has completed sub-wave 3 (blue) and will now correct in the short term. However, the timing of the start of the correction and conflicting technical indicators cast doubt on this forecast..

A bearish channel breakout could be confirmation that a correction has indeed begun.

A bullish breakout of the aforementioned short-term downtrend resistance line and parallel channel could be an indication that price is starting sub-wave 5 or is in extended sub-wave 3.

Bitcoin sends conflicting technical signals

Schedule BTC. Source: TradingView

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 opinion expressed in this forecast does not reflect the opinion 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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