Bitcoin (BTC) has gone under a trading pattern that has been in place since December 4th. This tells us that BTC is still stuck in a fix pattern.
Bitcoin’s (BTC) price was trading in a parallel channel descending from its local December 4th low. As it traded in this channel, it peaked at $ 52,088 on December 27.
This validated the midpoint of the channel and the horizontal area of $ 51,600 as resistance. Since then, however, a movement of decline has appeared.
On December 29, BTC moved below the ascending parallel channel and hit a low of $ 45,900. The price move under this channel is considered a bearish development and Bitcoin may decline to lower levels in the future.
Short-term movement of BTC
The six-hour chart shows that BTC is trading just above the support of the 0.618 Fibonacci retracement at $ 45,850. This zone coincides with the troughs from December 13 to 20.
Thus, it is likely that BTC will display an upper trough pattern within the range of Fibonacci supports from $ 44,145 to $ 45,830, before resuming its upward movement. This support range is created by the Fibonacci levels 0.618-0.786 (in white).
At the moment, there are no signs of a bullish turnaround.
Wave count
Due to the price passing under the channel, the wave count suggests that BTC is still stuck in a corrective pattern, and is likely to be in wave X of a complex corrective structure (in pink).
This wave is expected to end between $ 44,100 and $ 45,300, which corresponds to Fibonacci retracements 0.5 – 0.618 (in black).
Then we would expect an upward movement towards the range of $ 55,500 – $ 58,700, which is the resistance of the Fibonacci retracements 0.5 – 0.618. This would complete the Y wave as well as the entire corrective structure.
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