Bitcoin (BTC) started an upward move on August 31 and peaked at $ 48,246. However, he was unable to sustain the rally and created a long upper wick.

While the daily chart shows signs of weakness, there are bullish signs on lower time frames indicating that a short-term breakout is expected.

BTC daily movement

BTC closed yesterday, incrementally, above the opening price.

With the exception of a hidden bullish divergence (orange) that would be invalidated at a bearish close, technical indicators are bearish.

Both the MACD and the RSI generated bearish divergences before the slide. Also, the MACD is about to turn negative and the RSI is about to drop below 50.

next closest support is at $ 42,400.

Failed fault

six-hour chart provides a more varied reading. BTC broke an ascending support line. However, it did not initiate a significant downward movement and remained close to the breakout level (red circle).

Technical indicators remain clearly bearish. MACD is negative and the RSI is below 50.

However, the two-hour chart indicates that a breakout is likely.

price is trading within a parallel descending channel. This caral often contains corrective structures.

BTC rallied to the $ 46,800 support area after sweeping the lows and the MACD is turning bullish.

refore, although the direction of the long-term movement still looks bearish, a breakout of this channel seems to be the most likely option.

Read also IMF loan is not threatened by Salvadoran bitcoin adoption, says central banker

Future movement

long-term wave count remains unclear as the bearish (red) and bullish (orange) possibilities still hold.

However, the fact that the price does not go down immediately suggests that the bullish count is more likely.

However, that doesn’t rule out the possibility that BTC will eventually drop to $ 42,400. However, a breakout that completes sub-wave B appears to be the most likely scenario.

other possibility indicates that this is a fourth wave triangle and BTC will explode after further consolidation.

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

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