Bitcoin (BTC) Continues Hovering Above Support Zone

While there are short-term bullish signals in place, the ongoing bounce looks corrective. Therefore, it’s unlikely to be a bullish trend reversal.

BTC bounces

BTC decreased considerably on Sept 7, falling to a low of $42,483. However, it bounced afterward and created a long lower wick.

The bounce validated the $43,900 horizontal area as support. This is the 0.382 Fib retracement support level and a horizontal support area. Furthermore, it validated the Supertrend line as support (green). 

However, while the price action still looks bullish, the MACD and RSI have both turned bearish. The MACD histogram has turned negative while the RSI has moved below 50.

Future movement
The two-hour chart shows that the ongoing bounce is trading inside an ascending parallel channel. Such channels usually contain corrective structures. The increase has been combined with an increase in both the MACD and RSI.

The main resistance levels are found at $47,850 and $49,050. These are the 0.5 and 0.618 Fib retracement levels respectively. 

As long as BTC is increasing inside the channel, the price is likely to reach these targets. However, a breakdown could mean that the upwards correction has ended. 

In any case, an eventual breakdown from the channel is likely.

Source:beincrypto.com