Bitcoin rate corrects after the rally

Bitcoin rate corrects after the rally

Bitcoin, Ethereum, DeFi & Global Finance News – February 15th 2021


Bitcoin rate corrects after the rally

  • On October 28, Bitcoin has substantially corrected from the highs

  • Minor support levels occur at $ 13,130 and $ 12,730

  • The price is possibly in the fourth wave stage

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On October 28, bitcoin (BTC) rate turned sharply south and corrected from a high of $ 13,864 to a low of $ 12,892

Despite the fact that the price remains above the support level, the general dynamics shows that in the future bitcoin will fall.

Day fall

On Wednesday, October 28, the first cryptocurrency formed a bearish engulfing candlestick pattern, hitting a low well below the previous open. At the same time, a long bottom wick appeared on the chart. The candlestick indicates signals of weakening, but the top is not yet confirmed.

MACD started to decline, but while momentum looks restrained, RSI is not giving signals of bearish divergence, and stochastic oscillator has not started to decline yet.

When falling BTC rate the nearest significant support is expected at $ 12,000. At the time of writing the analysis, there were no clear signs of a retreat to this level on the daily charts.

Schedule BTC. Source: TradingView

Current range

The 6-hour chart shows that the decline was preceded by significant bearish divergence signals from the RSI.

Bitcoin rate corrects after the rally

This led to a fall to the previous resistance zone of $ 13,130, which turned into support. In case of bearish breakout, next support is expected at $ 12,770, followed by long-term support at $ 12,000.

Schedule BTC. Source: TradingView

Despite the rebound from the $ 13,130 area and the formation of a bullish hammer, the pullback looks corrective after a failed attempt to test the 0.5% Fibonacci retracement level at $ 13,378, where resistance is now located.

Until the quotes turn this level into support and overcome the 0.618% Fibonacci retracement level at $ 13,493, the most likely scenario is a fall towards the aforementioned support of $ 12,730.

Schedule BTC. Source: TradingView

Wave analysis

It looks like BTC started an impulsive bull run on September 7 (orange in the chart below) and is currently near the top of wave 3, which has already ended. The subwave structure is shown in blue on the chart.

The preliminary target of wave 3 passes at $ 14,360 – the level of 3.61% Fibonacci retracement in relation to the length of wave 1. Subwave 3 (blue) ended at the level of 3.61% retracement in relation to subwave 1, and, possibly, a similar situation will develop in the case of wave 3.

There is also a crossover of Fibonacci levels around $ 13,950, which, combined with resistance on the weekly chart, speaks in favor of a top formation..

Due to the fact that sub-wave 5 was very short, Bitcoin is likely to form a final high before the start of a corrective movement..

It is important to note that wave 3 has been going on for over 34 days. If the price has already reached a top and started a correction, it should last at least 13 days.

The most probable level of completion of the correction takes place at around $ 12,000, where the 0.5% Fibonacci retracement level relative to wave 3 and the channel resistance line connecting the lows and highs of waves 1-2 are located.

If Bitcoin has not yet formed a maximum, the 0.5% retracement level should be slightly higher.

This analysis will no longer be relevant if it falls below the high of wave 1 at $ 11,193 (red line on the chart).

Schedule BTC. Source: TradingView

You can read the previous Bitcoin forecast here.

Bitcoin rate corrects after the rally

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


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