Bitcoin

Bitcoin (BTC) price retraces after a rejection below $11,000

IN BRIEF

  • The price of Bitcoin faces strong resistance at $11,150.
  • The BTC has probably started a bullish momentum.
  • The course is currently completing an A-B-C training.

The price of Bitcoin (BTC) is approaching crucial resistance at $11,150. That said, it has been rejected before it gets there.

After a short term decline, it is expected that the BTC will attempt to pass this resistance.

Bitcoin nears resistance

Bitcoin’s price follows a downward resistance line from its local high of $12,473 on August 17th. It has validated this resistance line twice.

The price is once again approaching this resistance line. It also coincides with the $11,150 zone, which was initially used as support before converting to resistance on September 19th.

A break above this resistance and the $11,150 zone would confirm an upward trend.

The shorter term chart shows that the price was rejected twice by the 0.786 fibonacci level of the previous decline at $10,995. It has since begun to retrace.

The $10,550 area is expected to provide support as it is both the 0.5 fibonacci level of the entire upward movement and previous resistance. As long as this zone supports the price, the possibility of continued upward movement persists.

The waves of the BTC

It is likely that on 9 September, the Bitcoin Superstar started a bullish impulse (in orange below). It seems to have already completed waves 1 and 2, and has probably started the third wave.

Preliminary targets for the peak of this third wave are $12,180, $12,880 and $13,380 (i.e. fibonacci levels 1.61, 2.27 and 3.61 of sub-wave 1).

The sub-waves are shown in blue in the graph below.

The sub-wave count shows that the CTS is currently under correction in sub-wave 2, which appears within an A-B-C formation (shown in red below). This formation is expected to finish between the fibonacci levels 0.5 and 0.618, or between $10,450 and $10,550. However, its exact shape depends on whether portion A has three or five waves.

The BTC has yet to reach the fibonacci level 1.382 (in blue), so it is unlikely that the corrective period has ended.

In conclusion, although the BTC has probably started an upward movement, a short-term correction is expected before it resumes its ascent.