The daily Bitcoin indicators are bearish, but the short-term signals are extremely bullish. Bitcoin (BTC) has continued to rise since hitting a local low on January 11th.
Despite the significant increase , it is likely that Bitcoin will only decline in response to the previous correction and that this is not the start of a new uptrend.
The trend is considered bullish as long as BTC is trading above $ 36,701.
Bitcoin continues to rise
Bitcoin has been up since Jan 11, after hitting a local low of $ 30,261. The low coincides with the so-called 0.382 Fib retracement of the entire upward move.
It’s worth noting that the rally was preceded by a significant hidden bullish divergence in the RSI. Despite the rebound, the technical indicators still look bearish. The MACD is consistently bearish and the stochastic oscillator has made a bearish cross.
Should BTC see a reversal, the closest support area would be found at $ 29,050.
The six-hour chart shows that BTC has moved above the 0.618 fib retracement level from the previous downward move and is approaching 0.786 fib at $ 39,483. That target is also a horizontal resistance level.
The technical indicators are gradually all becoming bullish.
Even so, unless BTC manages to break the $ 39,483 resistance area, the current move is still likely to be a retracement and not the start of a new bullish move.
It seems that Bitcoin is currently trying to do just that.
The two hour chart is still showing no weakness as both the MACD and RSI are rising. In addition, Bitcoin appears to be following an ascending support line that coincides with the small support area at $ 36,200.
As long as BTC is trading above this level, the trend is considered bullish.
The so-called wave counting suggests that Bitcoin (Go to Buy Bitcoin Cheap Guide ) may have just completed an ABC correction structure in which waves A: C had a 1: 1 ratio. Since BTC has not yet been discarded, it is possible that Wave C could expand to the 1.61 Fib of Wave A to hit a high at $ 42,505.
While this would be a new all-time high, it would still allow corrective move as the previous decline spanned three waves. This suggests that the pattern is a shallow correction.