Bitcoin is tearing up, but the top may be near

CONTENT

  • Bitcoin made a bullish breakout of the parallel upward channel.

  • Minor support is located at $ 13,130 and $ 12,730.

  • Daily indicators are bullish, but short-term indicators are weakening.

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Bitcoin made a bullish breakout of the parallel bullish channel on October 27 and highs around $ 13,900. Long-term trend remains bullish, but there are tangible signs of short-term weakness.

Bullish breakout from the channel

The bitcoin rate (BTC) hit a high of $ 13,235 on October 22 and has since traded within a parallel upward channel. Yesterday, the price made a bullish breakout and reached a high of $ 13,864.

After that, the pair declined and tested the resistance line of the channel for strength, forming a long lower wick, which is a sign of buying interest..

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Schedule BTC. Source: TradingView

Despite the bullish breakout, the 6-hour chart shows strong bearish divergence in RSI and MACD.

In the event of a decline, the BTC rate may grope for minor support around $ 13,130 and $ 12,730.

Schedule BTC. Source: TradingView

Long-term dynamics

However, on the daily chart, BTC formed a bullish engulfing candle yesterday. Although the current candlestick is similar to the Doji candlestick, it still has the lion’s share of the day before the daily close, so it is too early to talk about its consequences for price dynamics..

Technical indicators do not show signs of weakening yet. MACD, RSI and Stochastic Oscillator are growing and do not signal any bearish divergence.

Schedule BTC. Source: TradingView

On the weekly chart, Bitcoin hits July 2019 highs, likely forming a double top.

In case of further growth, the next resistance levels will come into play around $ 16,200 and $ 19,200.

Schedule BTC. Source: TradingView

Wave analysis

It looks like BTC started a bullish impulse move (orange in the chart below) on September 7 and is now approaching the top of wave 3 or has already formed it. The third wave is extended and the subwave structure is indicated in blue.

Bitcoin is tearing up, but the top may be near

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The preliminary target of wave 3 is $ 14,360, the Fib level of 3.61 at wave 1. Subwave 3 (blue) ended at the Fib 3.61 level of the extension of subwave 1, so the same can happen with wave 3.

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However, in the region of $ 13,950 there is an area of ​​convergence of Fibo levels. Coupled with resistance on the weekly chart, this may indicate that the price has come very close to the top, and possibly even reached it..

Since sub-wave 5 is extremely small, it is more likely that BTC will form another final high and then begin a correction..

Schedule BTC. Source: TradingView

It should be noted that wave 3 is over 34 days old. If the price has already reached a top and started a correction, it makes sense to expect such a correction to last at least 13 days (Fibo 1.382 of the extension).

The most probable level of completion of the correction will be the area of ​​$ 12,000. Here is the Fibo level 0.5 of wave 3 and the channel resistance line connecting the lows and highs of waves 1-2.

It depends on whether Bitcoin has already reached the top. If not, then the Fibo level 0.5 should be located slightly higher.

Absorption of the high of wave 1 at $ 11,193 (red line) will neutralize this scenario.

Schedule BTC. Source: TradingView

You can read the previous Bitcoin forecast here.

Disclaimer: Trading cryptocurrencies carries 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.

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

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Bitcoin is tearing up, but the top may be near
Bitcoin is tearing up, but the top may be near
Bitcoin is tearing up, but the top may be near
Bitcoin is tearing up, but the top may be near

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