Bitcoin (BTC) is approaching a crucial resistance level created by a confluence of Fib resistances between $46,800-$47,800.

Multiple short-term time frames are showing weakness, suggesting that BTC might be approaching a top.

BTC approaches resistance

BTC has been increasing since July 20 after it reached a local low of $29,278. It created a higher low on Aug 5 and resumed its ascent after. 

So far, it has managed to reach a high of $46,700 on Aug 10. 

It’s approaching a very significant resistance level between $46,800 and $47,800. The resistance is created by the long-term 0.5 Fib retracement level (white), the short-term 0.618 Fib retracement level (black), and a horizontal resistance area.

Reclaiming this level would go a long way in indicating that the trend is still bullish. However, while the Stochastic oscillator and the MACD are bullish, the RSI has a generated bearish divergence (blue).

BTC Chart By TradingView

Short-term weakness

The six-hour chart shows similar weaknesses. Both the RSI and MACD have generated multiple bearish divergences. 

If a decrease occurs, the closest support levels would be found at $39,900 and $37,770. These are the respective 0.382 and 0.5 Fib retracement support levels.

BTC Chart By TradingView

The two-hour chart provides an almost identical reading, with the same divergences visible in the MACD and RSI.

Therefore, it would make sense for BTC to reach a top somewhere inside the aforementioned $46,800-$47,800 resistance area.

BTC Chart By TradingView

Wave count

While the long-term wave count is not entirely clear, the short-term count indicates that BTC is likely in wave five of a bullish impulse (black). 

Projecting the lengths of waves 1-3 (black) gives a target of $47,750 while using the length of wave 1 gives a target of $47,250 (orange).

BTC Chart By TradingView

For BeInCrypto’s previous bitcoin (BTC) analysis, click here. 

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

(Excerpt) Read more Here | 2021-08-11 00:13:00
Image credit: source

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