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BTC analysis – a reverse pattern is formed that predicts correction

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Although BTC is still holding on to the growing lap, which we also approached in last analysis, however, the price reached a double peak. It is thus possible that a top formation is formed, which means a reversal of the trend. So will the growing wedge be closed by a corrective leg?

BTC achieved a double short-term peak at about $ 48,000. After the second maximum, the price fell on the support zone of the growing wedge. At the same time, the market price still did not exceed the last minimum in point 2. Pattern 123 top formation so not yet confirmed. Its confirmation will occur if the price does not keep point 2 and then we will look for a new minimum in the correction leg.

BTC / USD 4H.  Source: TradingView
BTC / USD 4H. Source: TradingView

BTC growth weakens

At the moment, the most bearish scenario will occur if the price of BTC goes to be tested support up to $ 41,000. In the past, this support represented the resistance of the entire accumulation zone, which lasted two and a half months. In addition to the mentioned main support, the short – term is also on level $ 43,500.

The halt in growth is not only identifiable on the price chart. Indicators also recorded a decline in strength. Volume is constantly declining, and even if we compare points 1 and 3. RSI in the meantime, it also continues in negative divergence during this potential pattern. In the short term, it is so possible that we will enter the correction if the price does not maintain point 2. Bull targets on the other hand, they are at $ 50,500 and $ 53,500. There is no resistance between these values, but on the contrary a large gap.

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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