Bitcoin (BTC) breaks above falling resistance line

On September 16, bitcoin

bounced off a horizontal support level and peaked at $48,557 before falling slightly. Sponsored Sponsored

Today it bounced off an area of minor support at $47,000 and broke through a descending resistance line shortly thereafter.

BTC resumes growth

On September 13, Bitcoin bounced off an area of support at $43,950 and has been moving up

ever since.

The upward movement culminated in a peak at $48,557 on September 16. A short-term decline followed.

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Despite the significant rebound, technical indicators on the daily interval are still somewhat bearish

.

MACD tried to make a bullish reversal (green icon), but failed due to yesterday’s bearish candle close. The RSI

indicator gives a neutral reading as it is at the 50 line and the supertrend shows a bearish trend (red line).

Therefore, the bounce seems to be just a relief rally and not a bullish trend reversal.

Bitcoin (BTC) breaks above falling resistance lineBitcoin (BTC) breaks above falling resistance line BTC chart thanks to Tradingview

Short-term movement

The

six-hour chart is more bullish. It shows that the ongoing bounce was preceded by bullish divergence on both the RSI and MACD.

Following this, Bitcoin managed to regain the support area at $47,000 and validated it as support on September 16.

As long as the price does not close below this area, BTC is expected to continue its upward movement.

Bitcoin (BTC) breaks above falling resistance lineBitcoin (BTC) breaks above falling resistance line BTC chart thanks to Tradingview

Moreover, the 2-hour chart shows that bitcoin has already broken out of the falling resistance line.

Besides, MACD has given a bullish reversal signal and RSI is above 50.

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Therefore,

it is likely that BTC will continue to rise in the short term

. Bitcoin (BTC) breaks above falling resistance lineBitcoin (BTC) breaks above falling resistance lineBTC chart thanks to Tradingview

Wave count

The most likely

wave

count indicates,

That bitcoin is in wave C of the A-B-C corrective structure (black).

The first target for the top of this move was $47,940. This gave the A:C waves a 1:1 ratio (black) and was the resistance level at the 0.5 Fib retracement (white).

As such, Bitcoin is now moving towards the next most likely target at $50,750. This would give waves A:C a ratio of 1:1.61 and is the resistance level of the 0.786 Fib retracement.

Bitcoin (BTC) breaks above falling resistance lineBitcoin liczba falBTC chart courtesy of Tradingview

For a previous analysis of Bitcoin (BTC) by BeInCrypto, click here.

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