Bitcoin will soon complete the correction and resume the rise

The bitcoin (BTC) exchange rate has been declining since the pullback from local highs on September 19 and seems to be completing a downward movement before resuming growth.

BTC nears support

Bitcoin has been getting cheaper since September 19, when the quotes touched a high of $11,183. During the decline, the first cryptocurrency formed two bearish absorption candles and is trading near the psychological mark of $10,000, which at the beginning of the month led to the appearance of several long lower wicks, which indicates the presence of pressure from buyers.

Technical indicators paint a neutral picture with a bullish bias. On the charts, there are prerequisites for a bullish intersection of the stochastic oscillator, the confirmation of which will serve as a strong positive signal.

BTC chart from TradingView

On the short-term timeframes, it can be seen that the price bounced from the $10,120 mark, where the 0.786% Fibonacci retracement level is located. In addition, the MACD signals bullish divergence and moves smoothly in the direction of positive territory.

At the same time, there are no divergence signals on the charts starting from the 6-hour period.

BTC chart from TradingView

Wave analysis

BTC probably started forming an impulsive bearish pattern after reaching the aforementioned high on September 19 (highlighted in blue on the chart below).

If so, then yesterday, September 23, the cryptocurrency formed the top of the fourth wave.

It looks like BTC will complete another short-term move for two reasons:

  • Within the framework of the fifth wave, we can not yet distinguish five sub-waves (red)
  • When projecting the length of wave 1 to wave 4, a minimum of $10,110 is detected.

In the event of another short-term decline, bitcoin will confirm the level of 0.786% of the Fibonacci correction, followed by the resumption of the bullish course.

BTC chart from TradingView

So, bitcoin can demonstrate another wave of falling to the lows in the region of $10,100 before resuming the upward movement.

You can read the previous analysis of bitcoin here.

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