Bitcoin rebounded to the minor support area of $ 10,115.
The technical indicators are gradually turning bullish.
BTC is expected to complete another brief short-term upward move
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The price of Bitcoin Bull is on a downward path since its release on September 19. It is probably nearing the end of its correction, and we expect a sizable rebound shortly.
Bitcoin’s price has been declining from its peak of $ 11,183 on September 19. During this decline, price created two Japanese candlesticks bearish recovery, but is currently approaching the $ 10,000 area. This area features several long lower strands from previous drops in early September, which is a sign of buying pressure.
Bitcoin approaches support
Technical indicators are neutral, with a bearish bias. There is, however, the possibility of a bullish cross in the Stochastic Oscillator.
If this crossover holds true, it would be a strong sign that the trend has turned to the upside.
In the short term, price retraced to the fibonacci level 0.786 at $ 10,120, before starting to rebound. Additionally, the MACD has generated a bullish divergence and is gradually moving up towards positive territory.
However, this discrepancy does not show up in the 6 hour or longer time scales.
BTC price likely started a bearish impulse after hitting the aforementioned high on September 19 (blue below).
If this count is correct, the September 23 rise marked the peak of Wave 4.
It seems plausible that the price will show another decline in the short term, for two reasons:
There are not yet five sub-waves (in red) for wave five.
Projecting the length of wave 1 to wave 4 results in a slightly lower low of $ 10,110.
In the event of another short-term decline , it will be used to validate the fibonacci level 0.786, before a potential new upward movement in price.
In conclusion, Bitcoin’s price is expected to post another short-term decline to a low at $ 10,100, before a potential resumption of its upward movement.