Rising low for bitcoin promises further growth

Rising low for bitcoin promises further growth

My Prediction for Bitcoin in 2021 (Targets for Wave 3)

Contents

Rising low for bitcoin promises further growth
CONTENT

  • Bitcoin formed a bullish engulfing candle on September 24.

  • Support and Resistance are located at $ 10,200 and $ 10,800, respectively.

  • The price is likely to start an impulse rise.

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Bitcoin formed its first rally since September 4 on September 24, amid a bullish engulfing candle. This could launch a new phase of BTC growth.

Rising low for bitcoin promises further growth

Bullish engulfing candle

The bitcoin rate (BTC) formed a bullish engulfing candle on September 25, having strengthened from a low of $ 10 193 to a maximum of $ 10 795. Also, for the first time since the fall on September 4, the pair formed an increasing low.

Despite the price increase, technical indicators have not yet confirmed the uptrend. MACD is rising, but has not yet entered the green zone, and the RSI remains below 50. In addition, the Stochastic Oscillator has not yet formed a bullish crossover.

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BTC chart. Source: TradingView

On the shorter-term 6-hour chart, the uptrend has yet to be confirmed. The price rose only to the 0.618 Fibo level of the correction of the previous decline by $ 10,783. This level passes directly below the $ 10,800 area, which previously played the role of support, and now can act as resistance. This may indicate that the current movement is only a correction after the previous decline. In this case, the nearest support will come into play around $ 10,200.

Technical indicators are starting to give bullish signals. MACD is growing, the RSI is holding above 50, but the MACD has not yet entered the green zone.

BTC chart. Source: TradingView

Short-term schedule

The rise in price on the 2-hour chart promises bitcoin the beginning of the growth phase. The price has made a bullish breakdown of the downward resistance line, the MACD is giving bullish signals, the RSI is rising and is not giving signals of bearish divergence.

Two possible scenarios can be assumed:

  • Bullish breakout of the $ 10,800 area and turning it into support, and then further growth (green in the chart below)
  • Decrease in the direction of $ 10,400, and then – rise above $ 10,800 (red)

At the time of writing the analysis, the second option seems to be more likely.

If the $ 10,400 area does not hold out, it will significantly reduce the chances of further growth. The absorption of the $ 10,138 low will confirm that we are not now seeing the beginning of a new phase of growth.

BTC chart. Source: TradingView

Wave analysis

The current dynamics of the BTC rate, especially yesterday’s gain, indicate the likelihood that the price triggered a bullish impulse move on September 9 (orange in the chart below).

Rising low for bitcoin promises further growth

If this is true, then the market has now completed the formation of the 1st wave and its correction (in red), and has now begun wave 3. This scenario will become irrelevant if the price falls below the September 23 low by $ 10,136.

BTC chart. Source: TradingView

There is a bearish scenario where the previous rally was part of wave 4 and yesterday’s rally was part of wave 2 of the bearish impulse (red). However, the correction was too short and this analysis does not fit well with longer-term price action. Accordingly, we will not take this probability into account until we see a bearish break below $ 10,136..

BTC chart. Source: TradingView

Thus, if the BTC rate does not fall below $ 10 136, we can see the beginning of a new phase of impulse growth..

You can read the previous Bitcoin analysis here.

Disclaimer

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