Bitcoin (BTC) Struggles To Catch Support

A power struggle erased billions of dollars off Bitcoin, and it's about to  get worse

Bitcoin hit a high of $ 60,200 on April 2 and has been declining ever since. BTC is expected to find a bottom and resume gains.

BTC weekly close

Bitcoin  (BTC) formed a hanging candlestick pattern last week, followed by a small bullish candlestick on the chart this week.

Technical indicators are showing signs of weakening. The MACD has formed a bar of declining momentum, and the RSI is declining, almost dropping below 70. The Stochastic Oscillator is also declining, but has not yet formed a bearish crossover.

In this regard, we can admit that we are seeing strong signals that the bullish trend may end soon. However, these signals do not yet confirm the formation of the top.

MTC schedule Source : TradingView

Is BTC groping for support?

Technical indicators on the daily chart paint a more bullish picture.

The RSI index climbed above the 50 mark. The Stochastic Oscillator has almost formed a bullish crossover, and this may happen today. MACD is not signaling a bullish reversal yet, but remains in the green zone.

Bitcoin has been declining since April 2, when the price peaked at $ 60,200, and at the time of writing has not yet been able to find its footing.

MTC schedule Source : TradingView

On the 6-hour chart, you can see that the BTC rebound from the 0.382 Fib level of the correction was weak.

RSI and MACD indicators are going down. 

In this regard, the market drawdown is likely to the Fibo level of 0.5 Fib around $ 55,300, and only after that Bitcoin will resume its growth.

MTC schedule.  Source: TradingView

Wave analysis of MTC

The results of the wave analysis suggest that the BTC rate is still correcting (highlighted in red on the chart) after the completion of the minor sub-wave 1.

However, the price action after the aforementioned bounce (green arrow) does not look like the beginning of an impulse.

In this regard, the formation of another final minimum is likely, and only after that the price will begin to grow.

MTC schedule.  Source: TradingView

Conclusion

As such, Bitcoin is still expected to hit a new all-time high soon.

However, the market has not yet found support, so another short-term minimum may form before the growth phase resumes.

Leave a comment