The Bitcoin price (BTC) made an all-time high bid on December 23 but was rejected and has been falling ever since.
However, technical indicators are not all that bearish. Bitcoin is expected to reverse its trend at one of the support levels explored below.
Bitcoin Trend Is Slowing A Little
Yesterday, the price of BTC peaked at $ 24,100 in yet another attempt to reach a new peak. However, the higher prices could not be sustained. BTC was quickly rejected and went on to fall back to $ 22,600.
Technical indicators have begun to show early signs of weakness, but are nowhere near confirming a bearish trend.
The MACD is in the process of creating the first lower momentum bar in nine days, but the daily candle has not yet closed.
The RSI has produced a bearish diversion and has begun to fall. It may invalidate this with a hidden bullish diversion depending on the daily closing. The Stochastic oscillator is still bullish and increasing.
Short Term Movement
Lower time frames indicate that BTC has broken down from an ascending hotline and authenticated as a resistance. In addition, he also faces opposition from the small $ 23,950 district.
Technical indicators in the six-hour time frame are turning bearish but the RSI is still above 50.
The two-hour time frame puts two levels of support at $ 22,400 and $ 21,800.
Indicators show that the price movement is more likely to consolidate than it is to start a new downward trend.
Therefore, BTC is expected to find support at one of these two levels and start moving up again.
BTC Waves Account
The most likely wave count implies that BTC is in wave 4, which is expected to top near $ 21,675 (0.382 Fib scale level).
The reason for the shallow correction is the principle of a moment after the deep gable in wave 2.
The sub wave count for the possible wave 4 is shown in black in the chart below. A parallel channel connecting the highs and lows gives a very similar target, strengthening the possibility of BTC reaching a low near $ 21,675.
Bitcoin (BTC) price is expected to hit a low near $ 21,675 and start moving up after.
For BeInCrypto’s previous Bitcoin (BTC) analysis, click here!
Disclaimer: Cryptocurrency trading is at high risk and may not be suitable for all investors. The views expressed in this article do not reflect BeInCrypto’s views.