The bitcoin rate bounced on January 19 from the resistance area of $ 37,700 and immediately fell. However, BTC continues to hold on to support and may resume consolidation.
Bitcoin inside a symmetrical triangle
Course bitcoin (ВТС) from January 4 continues to consolidate inside the symmetrical triangle.
Yesterday the price bounced off $ 37,709 (0.618 Fib level of the correction of the last bearish move) and sank sharply.
However, at the same time, the BTC rate managed to stay above the support line of this triangle.
Will bitcoin hold above support or continue to decline? Share your opinion in the comments and join the discussion in our Telegram channel!
Schedule MTC… Source: TradingView
Technical indicators are neutral and cannot confirm the direction of the trend.
The situation on the daily chart looks ambiguous. The MACD and Stochastic Oscillator are giving bearish signals, but the daily RSI is actively showing hidden bullish divergence, which is a sign of the trend continuation.
In this regard, it can be assumed that signals of hidden bullish divergence may cause growth. However, the longer-term trend will remain bearish.
MTC schedule. Source: TradingView
Wave analysis
The day before, in our previous analysis, we noted:
“The results of the wave analysis suggest that the BTC rate is trading within the complex correction WXY (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 the growth that began in September 2020. “
Probably, yesterday’s bounce completed wave C of the triangle, and now the BTC rate may be in wave D or E.
After completion of the formation of this structure, a correction should be expected. This completion will be confirmed by the price drawdown below the low of wave B by $ 33,833 (red line).
On the other hand, a absorption of the high of wave A at $ 40,112 could be an indication that BTC is still in a bullish trend.
Schedule MTC… Source: TradingView
It is also possible that the bitcoin rate is still within wave C, but this cannot be accurately determined at this stage. In addition, this scenario will not have an impact on the longer term picture or key bullish / bearish levels.
MTC schedule. Source: TradingView
Conclusion
Thus, the bitcoin rate is expected to continue consolidating within the symmetrical triangle, after which it will make a bearish breakout. A decline below $ 33,833 will confirm the beginning of the correction.
You can read the previous Bitcoin forecast here.
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