The bitcoin exchange rate failed to develop a rebound from the support level

The bitcoin exchange rate (BTC) showed a false rebound from the support level of $11,266 and is ready to continue the decline in the short term, followed by the resumption of the bullish course

Bitcoin nears support

On October 12, bitcoin reached a high of $11,731. At the same time, on the two-hour chart, the RSI gave significant signals of bearish divergence. The price then moved higher, which has begun to show signs of fading momentum in recent days. During the pullback, the cryptocurrency met support in the area of $11,266, where it also passes the level of 0.382% correction relative to the bullish move. The next support levels are located in the $10,981-$11,124 zone.

Yesterday, the bitcoin exchange rate initiated a rebound, but immediately formed a bearish absorption candle and again fell into the support area.

At the same time, the MACD began to rise, which may signal that bitcoin is preparing for a new wave of growth.

BTC chart. Source: TradingView

The 30-minute chart shows that the quotes are inside the descending wedge pattern, despite the insufficient confirmation of the resistance and support lines.

At the same time, the presence of a wedge pattern and a potential bullish breakout fit into the rebound from support and potential subsequent growth, which is signaled by the MACD.

In the event of a bullish breakout, the nearest resistance levels are expected at $11,509 and $11,602.

BTC chart. Source: TradingView

Wave analysis

As we wrote in the previous analysis, the price is now inside sub-wave 4, which is corrective, and sub-wave 2 was represented by a quick and deep correction, which allowed the price to reach the Fibo level of 0.618 at $12,261.

It looks like Bitcoin is still inside Wave 4 (red on the chart), again approaching the 0.382% Fibonacci retracement level.

If this analysis is correct, the price may initially reach the levels of $11,918 and $12,231 to complete wave 5.

In the event of a fall below the maximum of the first sub-wave of $10,745, this wave analysis will lose its relevance.

BTC chart. Source: TradingView

The short-term structure (green) shows that the price may decline before resuming the bull run.

BTC chart. Source: TradingView

So, bitcoin may retreat in the direction of the nearest support level before resuming the upward movement.

You can read the previous analysis of bitcoin here.

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