Reading time: ~ 2 m
Bitcoin (BTC) has risen markedly from the Jan 10 lows and is giving a series of signals suggesting that the retracement phase is over.
Bitcoin has been trading inside a descending parallel channel since December 27. As a result, on January 10, the price formed a local minimum at $ 39,650. From here, the BTC rate immediately bounced and recovered above the lows of December 4 in the region of the channel’s median line. A long bottom wick appeared on the chart, which is traditionally considered a sign of buying pressure.
Further, on January 13, BTC broke through the resistance line of this channel, confirming the completion of the short-term correction.
Now the nearest resistance is marked in the area of $ 45 850 (Fibo level of 0.5 correction and horizontal resistance). Previously, this area acted as a support.
Source: TradingView
What the indicators are talking about
Technical indicators on the daily chart are showing bullish signs. This is especially noticeable on the MACD – its histogram gives very strong and distinct bullish divergence signals (green line). Such signals often precede price increases.
In addition, successively rising momentum bars (green icon) coupled with a bullish price close signal a bullish reversal.
A source: TradingView
BTC Wave Analysis
Long-term results wave analysis remain controversial, however shorter-term patterns suggest Bitcoin has completed its decline from all-time high (black).
The subwavelength analysis results are shown on the chart in red.
A source: TradingView
The bullish breakout from the channel and the deep retracement of potential sub-wave 4 (in red) give us reason to believe that the current rally is unlikely to be part of sub-wave 4.
The most likely scenario is the completion of the correction. In this case, the BTC rate formed a bottom after it marked a minimum of $ 39,558 on January 10.
Source: TradingView
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.
#Bitcoin #BTC #bullish #breakout #downtrend #channel
