Bitcoin Immediately Rejected After Retaking $40,000 Level - (TA - 15th of January)

Bitcoin Immediately Rejected After Retaking $40,000 Level - (TA - 15th of January)


Bitcoin (BTC) reached a high of $40,112 on Jan. 14 but was rejected immediately after and has been decreasing since.

While the long-term trend is likely bearish, the short-term trend remains bullish as long as Bitcoin is trading above $36,717.

 

Hidden Divergence Causes Bitcoin Pump

BTC has been moving upwards since reaching a local low of $30,402 on Jan. 11. It created a long lower wick just above the 0.382 Fib retracement level of the most recent upward movement.

BTC increased to $40,112 on Jan. 14 before getting rejected.

Technical indicators in the daily time-frame are bearish. While the RSI has generated a significant hidden bullish divergence, a price increase has already occurred as a result.

The MACD is moving downward and the Stochastic oscillator has made a bearish cross. These are both strong signals that the trend is bearish.

 

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Future Movement

The six-hour chart shows that BTC has been rejected at the 0.786 Fib retracement level, which previously acted as support. Therefore, the $39,463 area is now confirmed as resistance.

Despite the rejection, technical indicators are still bullish and there is an ascending support line currently at $34,000. This means that it’s possible that the short-term trend is still bullish.

 

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The two-hour chart shows that BTC is following another, shorter-term ascending support line. This line is currently just below the $37,143 support area, which is the 0.382 Fib retracement of the most recent upward movement.

As long as BTC is trading above this support area/line, the short-term trend is still considered bullish.

 

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BTC Wave Count

The wave count shows that BTC has possibly completed an A-B-C corrective structure.

Yesterday, BTC was rejected by the resistance line of a parallel ascending channel, which suggests that the movement is corrective.

 

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While the A-B-C correction looks completed, it’s still possible that wave 5 will extend.

Therefore, until BTC falls below the $36,717 sub-wave 4 low (shown with the red line), it’s possible that the upward move will continue. It could potentially reach a high of 42,603, which would give waves A:C a 1:1.61 ratio.

 

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While it’s possible that the BTC trend is in wave 4, it doesn’t fit with the longer-term count.

Furthermore, the invalidation level would be the same. So, for the time being, it doesn’t seem worth it to track this count.

 

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Conclusion

While Bitcoin seems to be nearing the top of its corrective movement, the short-term trend is considered bullish as long as BTC is trading above $36,717.

 

Where do you think the Bitcoin price is going?

Also, If you are interested in trading, I would suggest you try out BeInCrypto's free Telegram chat. I am there and it is growing very quickly (over 12,500 members) where they discuss the market and share interesting content. They also have a free premium channel where they have a cryptocurrency trading course and daily trading signals. If you are interested, you can click here.

Until next time, stay classy crypto world!


pheonixdown-dee
pheonixdown-dee

I am an avid crypto enthusiast. Feel free to get in contact with me on - IG - https://www.instagram.com/crypto_dizzle/ Twitter - https://twitter.com/DizzleCrypto


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