Bitcoin price rolled back after $ 40,000 attack

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CONTENT

  • Minor support comes at $ 36,800, more important around $ 34,100.

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

  • BTC is either in the final wave or has already formed a top.

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The bitcoin rate again moved the historical maximum, but after that it immediately dropped sharply. It is possible that BTC has already reached a top, although a correction will only be confirmed if the price falls below $ 34,175.

Another historic high

Bitcoin (BTC) rate again renewed a record high, soaring to $ 40 365. However, this rise was immediately followed by a sharp pullback, pushing BTC back to a low of $ 36 616. At the time of writing, the price has already won back some of these losses.

Despite the decline, technical indicators are not yet showing signs of significant weakness, with the exception of the declining Stochastic Oscillator (highlighted in red). However, it has not yet formed a bearish crossover.

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MTC schedule. Source: TradingView

Probable weakening

On the 6-hour chart, you can see such a sign of weakness as bearish divergence in the RSI. However, the MACD indicator has not lost its strength yet.

In addition, the BTC rate is moving along the upward support line, which is currently at $ 34,000, so even a price drawdown to this line will not break the current bullish structure..

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MTC schedule. Source: TradingView

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2-hour timeframe shows conflicting signals.

BTC rebounded from minor support in the $ 36,800 area, forming several long lower wicks. In addition, indicators signal hidden bullish divergence.

On the other hand, the MACD has lost momentum, indicating a weakening trend.

However, hidden divergence was a convincing sign of a continuation of the trend during this bullish move. In the meantime, we do not have enough indications of an impending bearish reversal. Therefore, we can assume that the BTC rate will continue to rise as long as trading is above the support area of ​​$ 36,800..

MTC schedule. Source: TradingView

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Wave analysis

Yesterday we noted:

“The likely target level for the formation of the top of sub-wave 5 (orange on the chart) is the $ 39 130- $ 39 170 area.”.

Yesterday the price reached this goal of ours and exceeded it, after which it fell sharply. In this regard, it can be assumed that Bitcoin has indeed formed a top, unless the price remains within the extended sub-wave 5.

Bitcoin price rolled back after $ 40,000 attack

MTC schedule. Source: TradingView

We marked in black on the chart a more detailed analysis of the subwave.

Yesterday’s fall broke the 2-4 trend line, which is often a signal of the end of the growth phase.

However, to confirm this, the BTC rate must complete a full correction for the entire length of subwave 5 in a shorter time frame than the time it took to form it. Accordingly, to confirm the correction, Bitcoin must break below $ 34,175 (red line) by midnight on January 8.

MTC schedule. Source: TradingView

If BTC continues to rally instead, it would mean that it is within extended sub-wave 5 (orange) and $ 46,639 is the next likely target level for the top..

MTC schedule. Source: TradingView

Conclusion

Thus, it is likely that the bitcoin rate has already formed a top, however, the correction will not be confirmed until BTC drops below $ 34,175.

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 price rolled back after $ 40,000 attack
Bitcoin price rolled back after $ 40,000 attack
Bitcoin price rolled back after $ 40,000 attack

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