Bitcoin doubted its strength …

Bitcoin doubted its strength …

Will BITCOIN Collapse At The 21 Million Limit?? 😰

Contents

Bitcoin doubted its strength after a rollback from the level $ 11,000
CONTENT

  • Bitcoin bounced off $ 10,000 but struggles to return to gains

  • BTC rate follows the line of downtrend resistance

  • Bitcoin may have started forming a new impulsive bullish wave

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Bitcoin (BTC) rate tried to resume growth after pullback from long-term support, but so far unsuccessfully.

However, in view of the decent rise earlier, it can be assumed that BTC has started a new wave of growth

Bouncing off long-term support

Bitcoin doubted its strength ...

Last week, the first cryptocurrency continued its rise, which was realized as a result of the correction from the lows under the psychological mark of $ 10,000, during which the price formed a Doji candle.

At the end of the past week, quotes formed a bullish candle, but could not reach the resistance levels that appeared on the charts for most of August and September.

Technical indicators are relatively neutral. RSI and Stochastic Oscillator rally above the 50 level, while MACD marked its third week of decline.

BTC Chart by TradingView

Reversal in progress?

The daily chart shows that the aforementioned rally stalled at the 0.618% Fibonacci retracement of the $ 11,214 bearish move. However, the subsequent pullback turned out to be rather modest, which gives hope for renewed growth with attempts of a new upward break.

Bitcoin doubted its strength ...

If successful, the price will meet resistance around $ 11,400, just below the downtrend resistance line connecting the last two declining highs.

BTC Chart by TradingView

The technical indicators on the daily chart paint a pretty good picture. RSI has exceeded the 50 level, which now acts as a support. The Stochastic Oscillator is in the process of forming a bullish crossover, and the MACD, which is moving northward, has almost entered positive territory.

BTC Chart by TradingView

The picture on the two-hour charts also speaks of the prospects for the resumption of growth in the bitcoin rate. The price has recently bounced off the upward support line and is moving northward, while technical indicators, as on the daily timeframes, are giving bullish signals.

BTC Chart by TradingView

Wave analysis

Long term wave structure shows that price has completed wave 4 (black on the chart) and started a new impulsive bullish wave.

This analysis will no longer be relevant if it falls below the high of the first wave of $ 9,451.

During the rally last week, the price tested the $ 11,163 level (dashed red line), which improved the technical outlook for the cryptocurrency.

BTC Chart by TradingView

If BTC completed the correction on September 9, then the coin is now in the fifth wave stage (orange on the chart) and began a new bullish move, following the upward support line.

The potential target for the top of the wave is at $ 11,350. If the price reaches this high, the ratio of waves 5 to 1 will be 1: 1, which is common in an extended third wave.

BTC Chart by TradingView

So bitcoin may have started a new bullish move that will eventually push prices to new year highs..

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