Bitcoin at a crossroads after rising to $ 24,000

Bitcoin at a crossroads after rising to $ 24,000

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Contents

Bitcoin at a crossroads after rising to $ 24,000
CONTENT

  • Bitcoin broke the rising support line

  • Resistance is fixed in the area of ​​$ 23,900

  • Technical indicators are giving mixed signals

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Bitcoin (BTC) corrected in trading on December 22 and almost completely won back losses from the previous fall

Bitcoin (BTC) is presumably in line with a long-term bullish trend, however, this hypothesis needs confirmation.

Bitcoin has rolled back from the bottom of the range
On December 22, BTC bounced off the lower end of the range and retraced almost all of the losses of the past two days. BTC peaked at $ 24,050, but then declined again.

Yesterday’s candlestick formed a bullish engulfing.

On the daily chart, the indicators are turning in a bullish direction despite the bearish MACD and the unfolding RSI. Stochastic is moving up, and MACD has not yet formed a single falling bar.

BTC chart, source TradingView

Further dynamics

The two-hour chart shows that BTC has dropped below the rising support line, which now acts as resistance. This move also marked the $ 23,900 area as a minor resistance level..

BTC chart, source TradingView

Technical indicators signal further growth, but not so convincingly. RSI risks falling below 50 and MACD below 0. Such a development of events will indicate that Bitcoin is in line with a short-term bearish trend.

A similar picture can be seen on the six-hour timeframe. The RSI is following the downtrend line of resistance, while the MACD is almost in negative territory. Thus, Bitcoin needs to overcome $ 23,950 to enter the bullish trend..

BTC chart, source TradingView

BTC Wave Analysis

Yesterday’s bounce almost confirmed that the previous low could be a fourth wave correction. It looks like BTC has started the fifth subwave (black), which completes the great third wave (orange).

If the theory is correct, this wave will end near $ 26,000.

BTC chart, source TradingView

However, an alternative calculation suggests that BTC has completed the third wave and has now begun a correction within the fourth wave..

We have previously noted:

Even so, we expect the fourth wave to be shallow and fast due to the principle of alternation..

Therefore, BTC is expected to hit a low in the $ 21,600 area and possibly sag to $ 20,800; in any case, a drop below the high of the first wave of $ 19,918 (red line) will cancel the bull account.

The problem lies in the fact that the fourth wave crossed the territory of the first wave, therefore, this can no longer be considered a bullish impulse. It is possible that BTC moves within waves 1-2 / 1-2.

However, a break of the upside support line at 23,000 would invalidate this scenario..

In this case, the rally is likely an ABC correction (shown in red) that completes the larger wave B (black). In this case, prices will continue to decline.

And BTC will return to the $ 21,600 area mentioned above.

findings

In the long term, BTC remains bullish, however it is unclear at this stage whether it has completed a short-term correction or is ahead of a new low.

Bitcoin at a crossroads after rising to $ 24,000

A recovery to the $ 23,900 area will confirm the completion of the correction and a rise towards $ 26,000. A drop below $ 23,000 would mean BTC is returning to a range of $ 20,800- $ 21,600.

Here you can read the previous technical analysis for BTC.

Bitcoin at a crossroads after rising to $ 24,000

Disclaimer: Cryptocurrency trading involves a high level of risk and is not suitable for all investors. The opinion expressed in this article does not reflect the position of BeInCrypto.

Disclaimer

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