Bitcoin (BTC) bounced off significantly on September 14, creating a bullish engulfing candlestick in the process.
This led to a breakout from a short-term parallel descending channel. BTC is now approaching the resistance area of $ 47,850 to $ 49,050.
Bitcoin is jumping
After BTC hit a low of $ 43,400 on September 13, BTC has rallied significantly. The next day it produced a bullish engulfing candlestick and hit a high of $ 47,250. Additionally, it is trading above the $ 43,950 horizontal support area, which is in line with the 0.382 fib retracement support level.
While price action looks bullish, the technical indicators are clearly bearish. The RSI is below 50, the MACD is declining and almost moving into negative territory, and the supertrend is bearish. The last time it did this was after falling from its all-time high in April.
Therefore, the price movement and the technical indicators provide opposing values.
The six-hour chart looks less bearish. It shows that BTC broke out of a descending parallel channel after both the RSI and MACD created bullish divergences. Such channels usually contain corrective movements.
However, BTC is approaching a strong resistance area between $ 47,850 and $ 49,050 created by the 0.5-0.618 Fib retracement resistance levels.
The two-hour chart shows that BTC has already validated the channel’s resistance line as support (green symbol). Also, the RSI is above 50 and the MACD is positive.
The most likely wavenumber indicates that the rebound is part of the C-wave from a flat ABC correction structure.
The most likely range for the top is between $ 47,900 and $ 47,950. This area is created by the 1: 1 length of wave A (white) and the 0.5 fib retracement resistance level (black).
The second most likely range for the spike is between $ 50,720 and $ 50,785. This is the 1: 1.61 length of wave A (white) and the 0.786 fib retracement resistance level.
Therefore, if the price moved above the 0.5 fib retracement level, it is likely that it would rise to the 0.786 fib retracement level.
For BeInCrypto’s previous Bitcoin (BTC) analysis, click here.
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