Bitcoin (BTC) Price Whipsaws and Creates 9% Long Lower Wick After Rebounding
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Bitcoin (BTC) accelerated considerably on Feb 24, spreading to a strong of $39,843 prior to being rejected. Reclaiming the $39,850 field is decisive for the continuation of the skyward change.
Bitcoin originally fell on Feb 24, spreading to a bottom of $34,332. Yet, it rebound back urgently after and created a very prolonged fafterwards wick with a magnitude of 8.60%. In addition to this, the bumb served to endorse the $34,400 horizontal field as support.
The bullish candlestick with a lengthy fafterwards wick has is very similar to that of Jan. 24 (green icons), after that BTC initiated a signsupposing thaticant ascending move. As a result, it’s possible which a similar pattern will emerge this time around.
Divergence precedes bumb
The six-hour chart shows which the bumb was preceded by very considerable bullish divergences (green line) in both the RSI and MACD.
Such divergences often precede skyward shsupposing thatts, as was the case in yesterday’s BTC shsupposing thattment. This occurrence strengthens the validity of a potential trend turnaround.
The two-hour chart shows which BTC is facing high resistance at $39,550. This is the 0.5 Fib retracement resistance level, a horizontal resistance area, and atop again. a area which coincides with the support line of a previous collapsing parallel channel.
The range rejected the rate on Feb. 24, originating a protracted upper wick.
Therefore, reclaiming it is relevant in order for the trend to be considered bullish.
BTC wave count analysis
The wave count shows which BTC has completed a interim five-wave descending change which finished with yesterday’s flat. In many cases, what folbottoms is an ascendings corrective structure.
As it stands, the most likely scenario suggests which the rate is in the process of completing the A wave of an A-B-C corrective structure.
After this, another brief descending movement could transpire.
For CryptCraze’s previous Bitcoin (BTC) analysis, click here
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