BTC continues its growing leg and we are building on yesterday’s analysis. The first target at $ 50,500 has been reached and we will now see if BTC can reach the second. But where is this second target?
BTC still not violated the bear flag, which has been in force since the beginning of growth in late July. The market price is already at $ 50,300 at the time of writing and more target is at $ 53,500. There is a gap between $ 50,500 and $ 53,500, and there has been no support or resistance at these levels in the past.
The BTC trend is weakening
On the continuation of the trend however, we will need slightly higher volumes. They remained minimal during the last growth and the trend is starting to weaken. Therefore, if the price fails to test the resistance of the flag again at $ 53,500 and a lower maximum is created, it is likely that we do not need to keep the support flag next.
We are currently watching support at the $ 46,500 and $ 41,000 levels. The $ 41,000 level is key support, but we’re not heading there yet. In the past, this support represented the resistance of the 2.5-month accumulation zone. The level of $ 46,500 is the support of the mentioned flag. The key will therefore be to track where the next local maximum is created.
RSI in the meantime, it is also still in negative divergence and is struggling with the overbought limit at 70 points. In the past, during this rising flag, it has always meant that the price has stopped rising, at least for a short time. So it is possible that we will rather stagnate today.
