Bitcoin’s price could move within a symmetrical triangle.
The price follows a short term ascending support line.
BTC has started the 3rd sub-wave of wave 5
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The price of Bitcoin (BTC) is consolidating in a neutral pattern. It is expected to eventually overtake it, reaching $ 11,200.
Passing or rejection of this resistance will likely determine the direction of the trend in the longer term.
BTC continues to consolidate
Bitcoin appears to be moving within a symmetrical triangle from its local high at $ 11,983 on September 19. The latter also coincides with the fibonacci level 0.618 of the preceding downward movement. As of the layout of this article, BTC is trading very close to the triangle resistance line.
Technical indicators are bullish. Both the RSI and the MACD are on the rise, the former having passed 50 while the MACD has moved into positive territory.
Further observation shows that the price is following an ascending support line (dashed line). In addition, it reached the fibonacci level 0.786 from the previous short-term decline. This means that it could be the start of a new upward movement rather than a corrective rise.
Although weaknesses are developing in the MACD, price is expected to break out of the triangle, as long as it moves above this rising support line.
If it breaks the triangle, the price could rise to the aforementioned 0.618 fibonacci level of the full decline, near $ 11,200.
The daily chart shows the main resistance area to be found at $ 11,200, coinciding with former support, the 0.618 fibonacci level and a descending resistance line.
Although it appears that the price is moving in this direction, a passage or rejection from this area will likely determine the direction of the future trend.
BTC likely started a bullish impulse on September 9 (orange below), and appears to be currently in wave 3.
Within this wave, the course completed sub-waves 1 and 2 (in blue) and started the third. This sub-wave has an initial target between $ 11,985 and $ 12,314. A decline below the low of $ 10,380 (red line) would reject this wave count.