- Bitcoin encountered rejection at the $44,720 Fibonacci resistance zone.
- The coin broke out from an ascending channel.
- Bitcoin is possible in wave 4 of a 5-wave upside action.
Bitcoin overcame its near-term set up on 7 February following a remarkable uptrend. However, the currency met rejection around the immediate Fibonacci resistance. For now, BTC attempts to secure dependable support.
The Bitcoin price touched a local peak at $45,492 on 9 February before downswings resurfaced. The downward move emerged after BTC faced rejection at 0.618 Fibonacci retracement zone when gauging the latest downward action from the $44,720 high. It formed a Doji candle, considered an indecision signal because of long lower and upper wicks.
The nearest support zones sit at $40,725, then $39,250, .382 and .5 Fibonacci retracement supports, respectively.
The 2hr price chat shows Bitcoin broke out of an ascending channel that persisted since 24 January. For now, the world’s leading currency tries to validate the channel’s resistance level as a support. Success here might translate to extended upswings towards new local peaks.
BTC Wave Count
According to the current upside actions setup, Bitcoin’s most likely long-term wave shows a potential bottom. Meanwhile, a near-term count reveals Bitcoin, completing a 4th wave retracement.
That might mean a drop to the previous parallel channel’s middle and the 0.382 to 0.5 Fibonacci retracement support near $41,920, then $40,800, respectively. That way, experts trust BTC might continue its uptrends.
The alternative wave count would indicate a 4th wave triangle formation. In such a case, Bitcoin may not break into the channel but would continue authorizing its resistance and consolidate before a breakout.
While publishing this content, Bitcoin fights near-term retracement at $43,600.88. The downtrends triggered correction across the space. The global market capitalization lost the $2T level again. For now, it hovers near $1.98 trillion at this publication.
Meanwhile, crypto pundits remain optimistic about BTC’s future price movements. The largest crypto by value needs a significant move past $50K for steady uptrends.
Will Bitcoin embark on its upsurges, or will downtrends continue? You can share your views below.