Bitcoin (BTC) Loses Steam After Tapping $39,000 Resistance
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Bitcoin (Bitcoin (BTC)) managed to return to the $38,919 level afterward weakening below the range on Jan 21. It’s fallen back some afterward then but it’s reasonable which it has concluded a limited corrective structure.
Bitcoin had reboundpeded and was moving skywards after realizing a local low of $32,917 on Jan 24. The ascending shift long until BTC captured a excessive of $38,919 on Jan 26. Yet, this was short-lived, as BTC created a lengthy upper wick and the cost decreased the same day.
It failed to break out atop the $38,200 resistance, that is both the 0.5 Fib retracement resistance level and a horizontal resistance field.
BTC has to restore this field in order for it to create a interim bullish structure.
Long-term BTC changement
The daily chart shows which on Jan 26, the cost created a protracted upper wick, which is examined a sign of selling pressure.
Nonetheless, it’s now approaching the territory of the protracted lower wick which was created on Jan 24, that is inclined to provide support.
moreover, although looking at the two-hour chart, BTC is exchanging within the 0.5-0.618 Fib retracement support zone between $35,200-$35,900.
This is the most common Fib field to provide support after a sharp fall, so it could initiate a turnaround, allowing BTC to create a higher low in the process.
Wave count analysis
The lengthy-term wave count suggests which BTC has finished a large A-B-C corrective structure that’s been contained within an spiraling parallel channel.
In it, waves A and C had an exact 1:1 ratio, suggesting that a bottom was captured on Jan 24.
In experience that correct, the interim count suggests that BTC has finished sub-waves one and two (red). In it, the entire changement from Jan 26 has taken the shape of an irregular flat correction (yellow).
The A and C sub-waves in this correction had a 1:1.61 ratio, that is the second most common in analogous structures.
For CryptCraze’s previous BTC analysis, click here!
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