Bitcoin hit an all-time high on April 14, but has been declining since then. Despite the fall, Bitcoin is approaching the area of convergence of several support levels. BTC is expected to rebound vigorously from here.
BTC made bearish channel breakout
Bitcoin (ВТС) is decreasing from April 14th. The rate of decline accelerated on April 18, which caused the price to drop below the support line of the parallel ascending channel.
After a weak rebound, the BTC rate made a bearish breakdown of the channel yesterday. After that, the price fell below the support line of $ 51,368 (Fibo 0.618 correction). Now this area can play the role of resistance.
Technical indicators on the daily chart are showing a bearish tone. Stochastic Oscillator has formed a bearish crossover. The RSI is trading below 50, while the MACD is in the red.
The next support is located at $ 47 680 (Fibo level of 0.786 retracement).
Bitcoin keeps falling
Applying Fibonacci levels to the last bearish price move allows us to highlight levels that match the targets marked on the previous chart.
The ongoing drawdown from the all-time high has a bearish impulse character. If that’s really the case. Now Bitcoin is in the fifth wave.
The Fibo 1.61 projection of the previous decline (black on the chart) gives us a target at $ 46,700. The 0.618 projection of the first part of the current decline (orange) highlights the target at $ 47,835. Both of these levels correspond to the Fibo support of 0.786 on the previous chart. Accordingly, it is likely that the BTC rate will soon find the bottom and start a vigorous rebound.
Schedule MTC. A source: TradingView
Short-term dynamics of BTC
The shorter-term 6-hour chart shows potential bullish divergence signals due to an oversold RSI. However, this has not yet received confirmation, although it may happen by the next close.
In addition, the signal line of the MACD indicator is at its lowest level for this yea
r.
On an even shorter-term 2-hour chart, this picture is confirmed. Here you can also see bullish divergence signals – by RSI and MACD.
Accordingly, in the near future the BTC rate may start a rebound in the direction of the resistance area of $ 54,710 (Fibo 0.382 of the correction of the entire decline).
Conclusion
Thus, Bitcoin is expected to reach the bottom in the region of $ 47,600- $ 46,600, after which it will begin a large-scale rebound.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
