Bitcoin (BTC) was up slightly in the week of September 13-20, opening at $ 46,025 and closing at $ 47.241.

However, since then it has lost the small support area of ​​$ 47,000 and appears to be in wave C of a corrective structure.

The long-term movement of BTC

BTC rose slightly last week, creating a little bullish candle.

However, the indicators on the weekly chart are still pointing down. This is mainly due to the fact that the price breaks below the long-term rising support line and then confirms it as resistance (red symbol). It also coincided with a rejection of the bearish super trend line.

However, both the MACD and RSI provide some bullish signals. The MACD is in positive territory and its histogram is showing a bullish reversal signal. The RSI has also just risen above 50.

Therefore, even if the long-term trend is down, it is still necessary to look at the lower time frames to more accurately determine the direction of the trend.

BTC / USDT weekly chart | Source: TradingView

BTC is losing support

The daily chart also offers a bearish outlook. While BTC is still trading above the USD 44,000 support area, the technical indicators are definitely bearish.

The RSI has fallen back below 50 after initially deviating from this level. In addition, the MACD is falling, almost touching negative territory. The supertrend line is bearish.

BTC / USDT daily chart | Source: TradingView

The six-hour chart shows that BTC has fallen below the marginal support area of ​​$ 47,000. This happened to a large bearish real body so this is an indication that the short term trend has also become bearish.

In addition, RSI and MACD are both falling. Where the RSI has fallen below 50 and the MACD is in negative territory.

BTC / USDT 6-hour chart | Source: TradingView

Count waves

The short-term wave count shows that BTC has completed a bullish ABC correction structure (black).

It moved slightly above the 0.5 fib retracement level (white) and provided a 1: 1 length for wave A: C before dropping off sharply.

BTC / USDT 2-hour chart | Source: TradingView

In the longer-term wave count, the ABC bullish correction completed the longer-term B wave (orange).

Hence, the power drop is part of a longer-term wave C.

The two most likely targets for the bottom of the move are at $ 42.630 and $ 38.350 to $ 38.750. The second range is the 0.618 fib retracement support (white) and gives wave A: C a 1: 1 ratio, so it is more likely to act as the bottom of this move.

BTC / USDT 4-hour chart | Source: TradingView

You can see the coin prices here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

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