Bitcoin price rebounded from a minor support area.
We see support at $ 10,350 and $ 10,115.
Resistors can be found at $ 10,638 and $ 10,800
The Trust Project is an international consortium of news organizations based on transparency standards.
The price of Bitcoin (BTC) has been rising since the low of September 21. This rise seems corrective, however, and BTC should complete another brief downward movement before resuming its bullish movement.
After hitting a low at $ 10,286 on September 21, BTC began an upward movement, which is still ongoing. So far, it has only managed to hit a local high of $ 10,573.
A weak rebound for Bitcoin
The rebound took place at the 0.618 fibonacci level, which is also the minor support at $ 10,350. The next support area is at the fibonacco 0.786 level, near the $ 10,115. The closest resistance is at $ 10,800.
Technical indicators are not showing any sign of a turnaround yet. The MACD has declined over the past three days and turned negative. The RSI has yet to generate any bearish divergence, and is not yet oversold.
The shorter term chart indicates that the current movement would likely be a retracement rather than the start of a new upward movement. Until then, the course was rejected by the fibonacci level 0.382 and relapsed. The 0.5 fibonacci level is found at $ 10,638.
Although there are bullish divergences in the RSI, the consequent rise has already taken place and the trend of the divergence has since been broken. The MACD is on the rise but has yet to reach positive territory.
At the moment, another test of the $ 10,350 area and perhaps the $ 10,115 area seems to be the most plausible scenario.
On September 19, it looks like BTC has started a bearish momentum (in blue below). If the count is correct, the price is approaching the top of wave 4, if it has not already reached it. Another downward movement is then expected. This would agree with the analysis in the previous section.
Also, by projecting the length of wave 1 to the top of wave 4, we get a target of $ 10,121 for the bottom of wave 5. This is the confluence of the fibonacci level 0.786 and a zone minor support.
This formation remains valid as long as the price does not pass the bottom of wave 1, located at $ 10,723.
In conclusion, Bitcoin’s price should drop to another low, near $ 10,100, before finally resuming its upward movement.