The course of Bitcoin has created a double peak figure and evolves in an ascending parallel channel.
Technical indicators show signs of weakness.
The price is probably in wave C of an A-B-C correction.
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Bitcoin’s (BTC) share price has risen significantly in the last two weeks. In the short term, however, it has created a bearish figure.
Technical indicators also show weakness, indicating that a retracement could take place.
Bitcoin’s Double Peak, a Sign of Weakness
Between October 28 and 31, the CTS price created a double peak figure near $14,000. The double top is normally considered to be a bearish reversal pattern.
This pattern was also combined with considerable bearish divergences in the RSI and MACD. Although RSI is still above 50, the MACD has moved into negative territory. This is a sign that the short term trend is becoming bearish.
BTC Double Top
The shorter-term 2-hour chart shows an even more pronounced bearish divergence in the RSI as well as the MACD.
In addition, the BTC appears to be moving within an ascending parallel channel and is currently in the middle of it.
Beyond the divergence, movements within a parallel channel are often corrective, with the possibility of a fall. In this case, the closest support zone would be the ascending support line of the channel, close to $13,200.
In BeInCrypto.com’s technical analysis of October 30th, it is written :
The course has probably started wave 4 and the three most plausible levels for the end of wave 4 are $12,683, $12,419 or $12,086. These objectives correspond to the fibonacci levels 1, 1.27 and 1.61 of wave A.
The short-term account (in blue) suggests that the price has just started wave C, which would complete the above-mentioned wave 4 (in orange).
BTC Short-Term Count
In the longer term, a further increase is expected with the completion of wave 4, which would bring the CTO to around $16,000.
Training would be rendered invalid by a decline below the peak of wave 1 at $11,093. Similarly, it would be partially invalidated in the case of a decline below line 2-4 (dotted line), currently located near $11,300.
In conclusion, due to the multiple bearish divergences and the presence of a double peak, it is likely that the BTC is in correction.
A passage under the channel would probably accelerate the speed of the decline, leading to a steep fall towards the targets outlined above.
Caution: Crypton trading is a high risk business and may not be suitable for all investors. The opinions expressed in this article do not reflect those of BeInCrypto.