Bitcoin has a stranglehold on the support of $ 32,100


For the third day, bitcoin is holding above the support in the $ 32,100 area. In the short term, it is expected to rise to the level of the bearish break at $ 37,550.

Bitcoin groped for support

The bitcoin (BTC) rate for the third day in a row is holding above the support area of ​​$ 32,100 (Fibo level 0.382 of the correction of the entire bullish move). The market has formed another long bottom wick on the chart, indicating that there is pressure from buyers. The next support is located in the area of ​​$ 29,050 (Fibo 0.5 correction of the same move).

Technical indicators are giving clear bearish signals. So, MACD is declining, and the Stochastic Oscillator has formed a bearish crossover. However, the daily RSI is showing strong signs of hidden bullish divergence. This can cause the price to rebound.

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MTC schedule. Source: TradingView

What’s next

On the 6-hour chart, the BTC rate has been moving along the upward support line since December 17. The price has already bounced off it four times. The last time this happened was when the low was formed on January 11.

If BTC continues to rise, resistance may be found around $ 37,550. Here lies the 0.618 Fib level, the previous support and a potential downside resistance line (marked with a dotted line).

Schedule MTC Source: TradingView

On the shorter timeframes, you can see that the price is potentially poised to trigger an advance towards $ 37,550. The chart shows a bullish breakout of the short-term downtrend resistance line and the RSI signals bullish divergence. The MACD indicator is also growing.

BTC is currently testing the resistance line it broke again. Growth is expected after this testing.

MTC schedule. Source: TradingView

Wave analysis

Based on the results of the wave analysis, the BTC rate has probably completed the formation of waves A and B of the ABC zigzag correction from the January 11 low of $ 30,420.

The likely top for wave C could be $ 38,614 (assuming a 1: 1 ratio of waves A: C). Also near this target level, at $ 37510, the 0.618 Fib level passes.

In addition, here is the resistance line of the parallel channel connecting the base of waves A and B.

MTC schedule. Source: TradingView

Conclusion

Therefore, Bitcoin is expected to strengthen in the $ 37,500- $ 38,614 range to reach the previous bearish breakout and complete the ABC structure.

You can read the previous Bitcoin forecast here.

Disclaimer: Trading cryptocurrencies carries a high level of risk and is not suitable for all investors. The opinions expressed in this forecast do not reflect the opinions of the editorial staff of BeInCrypto.

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Karice Dabule

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