The BTC trades between the support of $11,200 and the resistance of $12,000.
The short-term graph shows weaknesses.
Bitcoin has probably started a bullish momentum and is in wave 3.
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Bitcoin’s share price (BTC) passed a crucial resistance zone and then validated it as a support.
After a possible short-term decline, the course is expected to resume its upward movement.
BTC trading range
The price of Crypto Engine has been rising since September 8, when it reached a low of $9,825. This rise accelerated on October 8, causing the price to move above the $11,200 resistance zone.
The price then created a lower strand in order to validate the zone as a support, before rising. The BTC reached a local high at $11,731, and the next resistance zone is at $12,000.
BTC Trading Range
The 6-hour chart shows that despite the increase, the rally showed considerable weakness. Both the MACD and the RSI are declining, and the latter has generated considerable bearish divergences.
In addition, the price has created a long upper strand, which is a sign of selling pressure.
BTC 6-hour Weakness
The 2-hour chart gives us a similar view. The RSI shows an even more pronounced bearish divergence and the MACD has already turned into negative territory. In addition, the price has created a bearish overlay candlestick after reaching the above mentioned high of $11,731.
There is minor support at $11,300. If the candlestick breaks, one would expect the price to decline to the fibonacci levels of 0.5 to 0.618, or $10,894 to $11,053.
Btc 2-hour weakness
It is likely that the CTO will have departed a Wave 5 (in black below) on September 8. This wave 5 appears with 5 other sub-wave (in orange) and the course appears to be currently in sub-wave 3.
A decline below the trough of wave 2 at $10,136 would reject this scenario. A dip below the „0-2 line“ would also be a sign that the upward trend has ended.
A plausible target for the top of sub-wave 3 (in orange) would be between the fibonacci levels 2.21 and 2.61 of sub-wave 1, between $12,611 and $13,111. The first basic objective for the top of wave 5 is $14,000.
In the following image, we find a more precise view of sub-wave 3. In these images, the wave counts from the longest to the shortest are displayed in black, orange, blue and red.
Bitcoin Daily Wave Count
Sub-wave 3 is created by a five-wave formation, shown in blue below. The course is currently in sub-wave 3 minor, which has expanded and is expected to complete between $11,903 and $12,230, representing the fibonacci levels 2.21 and 2.61 of sub-wave 1 minor.
The red wave count corresponds to sub-wave 3 minor. A fall that would complete wave 4 (in red) would also be consistent with the short-term weaknesses displayed by the other technical indicators.