Bitcoin tested support again …

Bitcoin tested support again …



Bitcoin tests support again after failed bullish breakout attempt

  • Bitcoin Bullish Breakout of Short Term Falling Wedge.

  • Minor support is noted at $ 11,150.

  • The market is expected to launch wave 5 soon.

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Bitcoin made a bullish breakout of the short-term falling wedge on October 15, but failed to consolidate the break. However, the most likely scenario is continued growth.

Bullish Breakout of Wedge Pattern

Bitcoin (BTC) hit a high on October 12, but has since traded within the falling wedge pattern, which is considered a bullish reversal pattern. Indeed, on October 15 the price made a bullish break from this wedge and reached a high of $ 11,623, slightly exceeding the Fibo 0.618 level of the previous decline and moving above the area of ​​insignificant resistance at $ 11,550.

However, Bitcoin has failed to seal this breakthrough. The BTC rate formed a long upper wick and rolled back south. Now the $ 11,550 area can act as resistance.

Bitcoin tested support again ...

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Schedule BTC. A source: TradingView

BTC relies on support

BTC made a bullish breakout of the symmetrical triangle on October 9, hitting a high of $ 11,731 on October 12.

Currently, the price has returned to test the strength of the $ 11,150 area as support. Previously, it played the role of resistance. Also next to it is the Fibo level 0.5 of the correction of the entire previous bullish move after the breakout of the triangle.

Schedule BTC. A source: TradingView

Despite retesting the support, we cannot identify clear signs of a reversal. The MACD indicator first headed north, but failed to enter the green zone and is declining again.

The RSI is also declining and has already gone under the 50 mark. In this regard, we can say that technical indicators are not signaling a bullish reversal yet, although the price dynamics is potentially similar to a bullish continuation pattern..

Bitcoin tested support again ...

BTC chart. Source: TradingView

Wave analysis

In our analysis yesterday, we noted:

Bitcoin tested support again ...

“If our analysis is correct, the price may initially reach the $ 11,918 and $ 12,231 levels to complete wave 5.”.

It looks like the price is inside wave 4, which we expect to end around $ 11,150. After that, wave 5 will be triggered (red in the chart below). Wave 5 is expected to end around $ 11,920.

Schedule BTC. A source: TradingView

However, failure to incorporate short-term analysis into longer-term analysis indicates the likelihood that price is actually correcting. This will not change our short-term scenario, according to which Bitcoin is expected to rise to $ 11,900. However, in this case, the long-term analysis should be revised, since then a further significant decline should be expected.

We will be able to more confidently determine the correct scenario depending on how the price behaves around $ 11,900.

Schedule BTC. A source: TradingView

Thus, we expect the growth of the bitcoin rate to $ 11,900, but so far we cannot say with certainty whether the price will then continue to grow or rebound from this level..

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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