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Bitcoin is trying to form a bottom. This will be confirmed in the event of a bullish BTC breakout from the descending parallel channel.
Bitcoin sharply lost ground on December 13, falling to a low of $ 45,672. However, despite the decline, the BTC rate continues to remain above the 0.618 Fibo support level of the correction at $ 44,600. On December 4, the price tested this level, forming a long lower wick.
Technical indicators on the daily chart are giving mixed signals.
So, MACD is in the red zone and is declining. This means that the short-term MA is slowing down relative to the long-term MA, which is a sign of a bearish trend. Although the indicator formed two rising bars of momentum on December 11 and 12, a falling bar (red icon) appeared on the chart on December 13. This potentially nullifies the odds of a reversal price.
However, the RSI provides bullish divergence signals (green line). Thus, the price decline is not supported by the dynamics of technical indicators. This often precedes a bullish reversal.
A source: TradingView
Current pattern
On the 6-hour chart, BTC has been trading within a descending parallel channel since November 10, when the price reached its all-time high around $ 69,000.
These types of channels are usually associated with corrective patterns, which means that Bitcoin may take a bullish breakout from it.
Like the daily chart, the MACD and RSI indicators on this timeframe are giving bullish divergence signals.
Thus, in the event of a bullish breakout of the BTC rate from this channel, the immediate resistance will be expected for a pair between $ 55,530 and $ 58,670 (Fibo levels of 0.5-0.618 correction).
A source: TradingView
Have you groped BTC bottom?
On the hourly chart, Bitcoin bounced from the 0.618 Fibo level of the retracement at $ 45,750.
Earlier, on December 11, BTC bounced off the Fibo level of 0.5 retracement (green icon).
However, yesterday the price dropped again and formed a slightly lowering low around the 0.618 Fib level (green circle). This level is considered a traditional springboard for the completion of price corrections.
Accordingly, it can be assumed that Bitcoin has already hit a short-term bottom.
Source: TradingView
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