FX.co ★ #Bitcoin chart analysis

Trading instrument Bitcoin - D1 chart. The trend here can be described as neutral. The wave structure is forming an upward sequence. The MACD indicator is in the upper buying zone above its signal line. Earlier a very ambiguous situation developed. The price was squeezed between levels. When it previously rose from the very lows it reached the area of the horizontal resistance level 65960. It pierced slightly above it; understandably this was the higher-level tolerance. There was an opportunity for a decline here: the level itself, plus the CCI indicator was ready to exit downward from the upper overbought zone. Moreover, on that indicator you can see a bearish convergence - a strong sell signal. At the support level it was a solid signal. Some decline occurred, but at the same time there is a support level below at 63438. This is a mirror level at the edge of the decline and, as is known, such spots are very strong, so at that time this created a contradiction. I believed that the price might pause around this level and a battle between buyers and sellers would unfold. Most likely, in the long term Bitcoin will resume its growth. However, it tends to trade sideways for a very long time with a wide range. You can sit in buys for more than a month while it eventually produces a new directional upward movement. But it was clear that the US dollar was dominating the market overall, and this trend affected this instrument as well. As a result, the price was pushed below the low. At the same time, a bullish divergence formed on the MACD indicator, a very decent signal for growth. Additionally, as confirmation there was a reversal pattern — a descending wedge. A mirror level of 60752 was formed below; the price tested its area from above (accounting for tolerance) and tried to rise. For several weeks the price ranged at the bottom, not daring to develop the growth that was clearly brewing. In the end the price shot up significantly over several days, then retraced somewhat and got stuck. I expected the price to attempt to retest the level 81463. And as can be seen, a substantial rise occurred; the breakout above the peak happened. But will it develop further? Behind the peak there is a potential reversal zone, and a divergence formed on the MACD. There was a drop to the area of the broken level 81463 and after standing there the price made a bounce upward. But it was scary to buy against the divergence. And as can be seen, the fears were not unfounded: the price simply got stuck near that level for several weeks. But in the end the price fell amid the alleged Binance hack and the siphoning off of some billions. Initially it fell just short of the Fibonacci 161.8 level and tested from below the broken level 80057, from which a powerful sell-off occurred. I think the price will not go further down; now they may pull the price up, luring sellers into a trap. The three-wave corrective model has played out to the downside.