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Will Bitcoin be able to recover above the $ 11,000 mark?

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THE THREE BIGGEST REASONS BITCOIN COULD FLY ABOVE 50K THIS WEEK!!!

Will Bitcoin be able to recover above the $ 11,000 mark?

Will Bitcoin be able to recover above $ 11,000?
CONTENT

  • Bitcoin trades within a parallel upward channel.

  • Technical indicators on short-term charts are showing signs of weakening.

  • Price is likely approaching the top of corrective wave C.

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Bitcoin hit a high of $ 10,940 on September 15, but bounced off important Fibonacci levels and channel resistance. Now the price is trying to rise again.

The bulls got fought back

Will Bitcoin be able to recover above the $ 11,000 mark?

The bitcoin rate (BTC) formed a local minimum and entered the stage of consistent growth on September 8. At the same time, the pair remained inside a parallel ascending channel, keeping very close to the resistance area.

In addition, yesterday’s high at $ 10,940 marked a test of both the channel resistance line and the 0.5 Fibonacci retracement level of the entire bearish move, making this area a likely reversal level..

Technical indicators are showing signs of weakening. RSI is giving strong bearish divergence signals, while MACD has started to decline and may enter bearish zone.

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BTC chart. Source: TradingView

The daily chart does not yet confirm the uptrend. Although the MACD is rising, the RSI is likely to face resistance around 50. Additionally, the Stochastic Oscillator has yet to form a bullish crossover..

The price needs to make a successful bullish breakout of the 0.618 Fib level at $ 11,200 (previously it played the role of support), and the Stochastic Oscillator should form a bullish crossover against the background of the RSI growth above 50. Until this happens, the current price dynamics should be viewed more as a correction, and not as the beginning of a new phase of growth.

Will Bitcoin be able to recover above $ 11,000?

BTC chart. Source: TradingView

Wave analysis

On September 2, the BTC rate, apparently, began to form a bearish impulsive five-wave structure (orange on the chart). Now the price is inside wave 4. The most probable levels to complete this wave are $ 10,937 (0.5 Fib and current high) and $ 11 199 (0.618 Fib and previous support).

The fourth wave is represented by a complex corrective structure w-x-y (red on the chart).

BTC chart. Source: TradingView

A closer look at wave Y allows us to identify the A-B-C structure (blue) on the chart. The wavelength is an argument that the market could hit a maximum of $ 11,200, as in this case, the ratio of waves C to A would be 1: 1.61, which is a widespread ratio for A-B-C corrections..

BTC chart. Source: TradingView

In addition, we can see that wave C is in the fifth and final sub-wave (red). A breakdown of the upward support line that connects the bottoms of sub-waves 2 and 4 will confirm that the upward correction of Bitcoin has completed.

Will Bitcoin be able to recover above $ 11,000?

BTC chart. Source: TradingView

Thus, the BTC rate is preparing for the completion of the upward correction. This can happen around $ 10,930 or $ 11,200.

You can read the previous Bitcoin analysis here.

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