- We observe a support at $10,550 and a resistance at $10,950.
- The price follows a long term upward support line.
- The BTC appears to be completing a W-X-Y correction.
The price of Bitcoin (BTC) has been rejected by the $11,000 zone many times in the past few weeks. That said, it has managed to stay stuck below $10,000.
It is possible that the BTC could fall back slightly below $10,550 before resuming its upward movement.
Bitcoin nears resistance
Bitcoin has been rising since September 23rd when the price hit a local low of $10,138. This rise continued until the price rejected the 0.786 fibonacci level from the previous decline to $10,959.
However, the decline caused by this rejection proved to be small, with the price only dropping to $10,683.
The first support zone is at $10,550, while the main resistance zones are at $10,950 and $11,200.
The 2 hour chart shows that the price follows a rising support line. If the price moves below the support line, it could cause the price to move down to the $10,550 support zone mentioned above.
On the opposite side, the BTC could follow a downward resistance line (dotted line). If it passes over it, it could move up to the $11,200 resistance zone.
The technical indicators are relatively neutral. The line the price crosses will likely determine the direction of the next move.
The wave count for the BTC suggests that the price first started an upward momentum on September 23rd (in blue below). It would then have completed the first wave on September 26. The sub-wave count is shown in red.
If this account is correct, the price would be completing a correction in W-X-Y, which should end around $10,550.
In addition to a support area, this is also the fibonacci level 0.5 of the entire decline, as well as a projection of the length of sub-wave W at the top of wave X. The confluence of several important levels makes it the most plausible zone for the end of the correction.
On the contrary, if the price rises, the first target on the rising slope is $11,200.
In conclusion, while it is likely that the BTC has started an upward movement, a short-term correction below $10,550 could occur before the price resumes any upward movement.