- Bitcoin seems to create a bearish engulfing candle.
- The dominant coin risks losing the horizontal support at $56,500.
- Bitcoin has its price actions within a near-term symmetrical triangle.
After the price rebound during the 25 November sessions, Bitcoin decreased significantly today, hitting weekly lows.
Bitcoin has hovered around the support levels of $56,500 since 19 November. Keep in mind that the level served as 0.382 Fibonacci retracements and a horizontal support level. Meanwhile, technical indicators printed some bullish signals yesterday.
The Moving Average Convergence Divergence finally formed a single higher following 15 uninterrupted bottom momentum bars. That indicated that the near-term trend picked steam gradually. Moreover, the Relative Strength Index witnesses a bullish divergence. That is a bullish case where an equal selling momentum surge does not accompany a price dip.
Nevertheless, Bitcoin reversed the trends on 26 November and might be forming a bearish engulfing candle at the moment. Such a bearish candlestick can mean erasing the previous day’s gains within the up-and-coming sessions. Though we have some hours before a daily close, early Friday trading sessions appear highly bullish.
If the upcoming sessions see a breakdown, Bitcoin will secure support around the $53,250 level.
Near-Term Bitcoin Movement
According to the 6-hr price chart, Bitcoin has been plunging beneath a descending resistance level since 19 November. That confirms corrections for the leading cryptocurrency. Moreover, the crypto formed a lower high matching the 20 November price. That meant a bearish signal since it did not have the momentum to touch Bitcoin’s previous peaks.
Also, the shorter-term 2hr price chart indicated that Bitcoin trades within a symmetrical triangle and nears a support level that matches the horizontal support level at $56,500. That means a breakdown from the area might accelerate the plummets.
BTC Wave Count
According to the wave count, Bitcoin is within wave C of the A-B and C corrective structure. That shows that Bitcoin can resume upward actions after completing the anticipated correction. Meanwhile, the sub-wave count indicated that Bitcoin moves in wave-5 of the retracement, the last phase. The crypto has a significant Fibonacci confluence within the $53,250 – $53,800 range, formed by:
- Sub-wave 1 length
- Sub-wave 4 external retracement
- Wave A length