Bitcoin (BTC) makes another attempt to break out above $46,800

Bitcoin

(BTC) managed to peak at $46,743 on August 11, but was rejected almost immediately after. Sponsored

The ongoing decline was preceded by significant short-term weakness. Following this, BTC broke down from an upward wedge.

BTC

Rejection

Bitcoin has been moving upward at an accelerated pace since forming a higher low on August 5. This led to a peak at $46,743 on August 11.

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This peak was reached at the bottom of the $46,800-47,800 range. This range forms a convergence of Fib retracement levels and is also a horizontal resistance area. After that, BTC formed a falling star candle (red icon) and fell sharply towards $45,000.

The decline was preceded by a bearish divergence on the RSI. MACD

formed a single lower momentum bar – a sign that the dynamics are gradually reversing.

Therefore, it is possible that the top of this movement has been reached.

Bitcoin (BTC) makes another attempt to break out above $46,800Bitcoin (BTC) makes another attempt to break out above $46,800BTC chart thanks to Tradingview The

ongoing decline

The

2-hour chart shows that the downward movement was preceded by significant bearish divergence on RSI and MACD.

If the downward movement continues, the main support areas are located at $39,900 and $37,770. These levels are the respective support levels at 0.382 and 0.5 Fib retracements.

Bitcoin (BTC) makes another attempt to break out above $46,800Bitcoin (BTC) makes another attempt to break out above $46,800BTC chart thanks to Tradingview

The same perspective can be seen on the 6-hour chart. It also shows a double top formation where the second top is followed by a bearish covering candle.

Bitcoin (BTC) makes another attempt to break out above $46,800Bitcoin (BTC) makes another attempt to break out above $46,800BTC chart thanks to Tradingview

Wave count

The long-term

wave

count is not completely clear. However, the higher highs of August 11 indicate that it is possible that BTC has completed a fifth wave.

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<p>In this case, it was part of an ending diagonal, closing at $46,743. After that, Bitcoin broke down from the upward wedge and could begin a correction.

If this is true, Bitcoin could fall towards the support levels shown above.

Bitcoin (BTC) makes another attempt to break out above $46,800Bitcoin (BTC) makes another attempt to break out above $46,800BTC chart courtesy of Tradingview

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

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