- The course of Bitcoin could evolve within a symmetrical triangle.
- The price follows a short term upward support line.
- The BTC has started the 3rd sub-wave of wave 5.
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The Bitcoin Up Course (BTC) is consolidating within a neutral framework. It is expected to eventually surpass it, reaching $11,200.
The passage of this resistance or its rejection will likely determine the direction of the trend in the longer term.
The BTC continues to consolidate
Bitcoin appears to move within a symmetrical triangle from its local $11,983 apex on September 19. It also coincides with the 0.618 fibonacci level of the previous downward movement. At the time this article was written, the BTC was trading very close to the resistance line of the triangle.
Technical indicators are bullish. Both the RSI and the MACD are rising, the former having exceeded 50 while the MACD has moved into positive territory.
Further observation shows that the course follows an ascending support line (dotted line). In addition, it has reached the 0.786 fibonacci level of the previous short-term decline. This means that this could be the beginning of a new upward movement rather than a corrective rise.
Although weaknesses are developing in the MACD, the price is expected to move beyond the triangle as long as it moves above this upward support line.
If the price exceeds the triangle, it could rise to the above-mentioned fibonacci 0.618 level of the entire decline, close to $11,200.
Bitcoin Ascending Support
Its main resistance
The daily chart shows that the main resistance zone is at $11,200, coinciding with an old support, the fibonacci level 0.618 and a descending resistance line.
Although it appears that the price is moving in this direction, a passage or rejection of this zone will likely determine the direction of the future trend.
BTC Main Resistance
The waves of the BTC
The BTC probably started a bullish momentum on September 9 (in orange below), and currently appears to be in Wave 3.
Within this wave, the course has completed sub-wave 1 and 2 (in blue) and has begun wave 3. This sub-wave has an initial target between $11,985 and $12,314. A decline below the low of $10,380 (red line) would reject this wave count.