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BTC analysis – where can the end of the correction leg occur?

2 min read

BTC continues its short-term downward trend for the last trading day. There is still room for further decline. Today, therefore, we will look at support levels, where the price may go. Long-term sentiment however, it has not changed.

BTC first, he created a short-term 123 top formation pattern, which predicted a reversal of the short-term trend. At the moment, however, we may no longer be interested in it, as it has met its goal. After closing the growing wedge and breaking point 2, there was a reversal of the trend we expected in previous analysis. However, the volumes at the last spill were not so strong. It is therefore likely that this is only a normal short-term correction before further growth.

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

Where can the BTC trend reverse?

So where are they potentially support reverse zones? The first level we will monitor is at the value of the previous maximum at approx $ 42,500. Subsequently, significant support is on the surface $ 41,000. This level represents the previous resistance of the whole accumulation zone, which lasted more than two months. In addition, the first wedge target on the retracement is 38.2% at this value. On the other hand, there is resistance at the double peak $ 48,000.

RSI it also has room for decline, being located at about 40 points. So far, the indicator does not even point to a positive divergence, but rather converges with the price chart. However, RSI does not have to go into the oversold phase for a rebound to occur. The downward waves of RSI are also getting weaker.

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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