Bitcoin (BTC) fell below a trading pattern that has existed since December 4th. This shows that BTC is still in a corrective pattern.

Break through the ascending parallel channel

Bitcoin (BTC) has been trading on an ascending parallel channel since hitting a local low on December 4th. When trading within or from this channel, it hit a high of $ 52,088 on December 27th.

The high serves to confirm the channel’s centerline and the $ 51,600 horizontal resistance area as resistance. However, there has been a downward trend since then.

On December 29th, BTC broke an ascending parallel channel, reaching as high as $ 45,900. This collapse is seen as a bearish trend and could result in lower prices in the future.

Bitcoin / USDT 6-hour chart | Source: TradingView

Short term volatility

The six-hour chart shows Bitcoin trading just above the 0.618 fib retracement support at $ 45,850. This level coincides with the 13-20th low. December together.

This makes it likely that Bitcoin will hit a higher low within the Fib support area of ​​$ 44,145 to $ 45,830 before resuming its upward movement. This support area is generated by the support levels of the Fib retracement from 0.618 to 0.786 (white).

There are currently no signs of a bullish reversal.

BTC / USDT 6-hour chart | Source: TradingView

Count waves

Due to the collapse of the channel, the wave count suggests that BTC is still in a correction and is likely in wave X of the complex correction WXY (pink).

This wave will end between $ 44,100 and $ 45,800, which is the 0.5-0.618 fib retracement support (black).

After that, expect an upward move towards USD 55,500-58,700 (0.5-0.618 fib retracement resistance levels). This will complete wave Y and the entire correction structure.

BTC / USDT 6-hour chart | Source: TradingView

You can see the BTC price 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.

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