Market Report: Bitcoin surges after Tesla’s Elon Musk snaps up $1.5bn into crytocurrency

Contents

Bitcoin continues to fall after ...

Bitcoin continues to fall after double top formation
CONTENT

  • Bitcoin price bounced off $ 10,900 and fell sharply

  • Bullish divergence signals are seen on short-term BTC charts

  • BTC may have completed an A-B-C correction

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The bitcoin (BTC) rate bounced off the $ 10,900 level and fell sharply, but, possibly, it will soon complete the correction and resume the rise

Bounce and fall

Bitcoin touched a high of $ 10,920 on October 1, forming a double top against the price on September 28.

Bitcoin continues to fall after ...

The top formed near the 0.786% retracement level relative to the previous decline, which indicates a high probability of a reversal at this point.

Following the emergence of bearish divergence signals from the RSI and MACD, the price dropped sharply, reaching a low of $ 10,385.

Bitcoin continues to fall after ...

At the time of writing, the cryptocurrency is trading at $ 10,440.

BTC Chart by TradingView

On shorter-term charts, it can be seen that after the decline, the price reached the level of 0.618% correction relative to the previous growth and is now in the region of 0.618% -0.786% correction ($ 10 310- $ 10 440).

Despite the drop in quotes, two bullish signals appeared on the charts:

  • RSI signals bullish divergence.
  • During the second wave of decline, trading volumes were significantly lower.

These are the harbingers of the imminent end of the decline, which will be replaced by growth.

BTC Chart by TradingView

Wave analysis

Despite the drawdown, the current trend looks more like the completion of a correction than the beginning of a new bearish move.

The price may have completed the second wave (blue in the chart below), which was realized inside the structure A-B-C (red), in which the ratio of waves A: C is 1: 1.61.

A decrease in trading volumes also speaks in favor of such a scenario, the further implementation of which implies an early resumption of the bullish move..

BTC Chart by TradingView

On the longer-term charts, Bitcoin began forming an impulsive pattern on September 9 (orange in the chart) and completed waves 1 and 2, now in the wave 3 stage.

Within the third wave, BTC has formed sub-waves 1 and 2 (blue) and will soon begin the third sub-wave, the preliminary target of which is at $ 11 985- $ 12 314.

BTC Chart by TradingView

So, BTC may have completed a correction and will gradually start to rise soon.

 

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Bitcoin continues to fall after ...

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