Bitcoin’s price moves in an ascending parallel channel.
The technical indicators show short-term weaknesses.
Price is probably approaching the top of its corrective C wave
The price of Bitcoin (BTC) reached a local peak at $ 10,940 on 15 September. That said, it was then rejected by a significant fibonacci level , before declining slightly.
As of the layout of this article, Crypto Engine was once again looking to break through this resistance.
The rejection of Bitcoin
Since its local low on September 8, Bitcoin has exhibited a gradual rise. Its movement may be contained within an ascending parallel channel, in which price is currently very close to the resistance line.
Additionally, the September 15 high of $ 10,940 validated the resistance line of the channel as well as the 0.5 fibonacci level of the entire decline. This makes it a likely level of turnaround.
Technical indicators show weaknesses. There is a significant bearish divergence in the RSI, and the MACD has started to decline significantly. The latter could prepare to move into negative territory.
The daily chart also indicates that the uptrend has yet to be confirmed. Although the MACD is on the rise, the RSI may face resistance at the 50 line. Additionally, the Stochastic Oscillator has yet to form a bullish cross.
Unless the price manages to meet the following targets, this is likely a retracement rather than an uptrend.
The price exceeds the fibonacci level 0.618 to $ 11,200, this level having first served as support
The Stochastic Oscillator generates a bullish cross.
The RSI exceeds 50.
On September 2, BTC likely started an impulsive, bearish five wave formation (orange below) and is currently in wave 4. The two most plausible levels for the end of this wave are found at 10,937 $ (fibonacci level 0.5 and current peak) and $ 11,199 (fibonacci level 0.618 and old support).
This fourth wave appears within a complex corrective structure in wxy (in red).
Further observation of wave Y reveals ABC formation (in blue). Wave length supports a climb to a high of $ 11,200. This would give the C and A waves a ratio of 1: 1.61, which is common when making ABC corrections.
In addition, we can see that wave C is in its fifth and last sub-wave (in red). If the ascending support line that connects the troughs of subwaves 2 and 4 is broken, this would confirm that the upward correction is over.
In conclusion, the price of BTC appears to be approaching the end of its correction, which should end around $ 10,930 or $ 11,200.