Bitcoin hovers over the $42,000 support as actual wave count is still undetermined

After its price has gone bearish yet again in the last couple of weeks, bitcoin (BTC) made a significant comeback. However, if the king coin’s recent movement is anything to go by, BTC may well seem to be unsuccessful in moving towards the $44,000 resistance area.  

This happened on September 27 as bitcoin got denied by the above-mentioned resistance area, thus making a long upper wick alongside a bearish candlestick. This was then followed by another dip on the 28th.   

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Despite the noticeable short-term bullish indicators in place, the longer-term data is indicative of a bearish trend.  

Bitcoin at $42K  

Nonetheless, bitcoin may well seem to have reclaimed its footing on the 29th and it’s pretty much on its way to creating a bullish candlestick. At the time of writing, bitcoin’s price sits at $42,155 as it is up by 0.57 percent in the last 24 hours.   

Not yet bullish  

BTC has been hovering over the $42,000 support area as this was created by the wick from the 27th. However, it’s worth noting that the technical indicators are still bearish since the moving average convergence divergence (MACD) and the relative strength index (RSI) are both on a nosedive. That said, such a trend cannot be deemed bullish unless the $44,000 zone has been regained. Further, the closest support is located at $38,000.  

In line with this, provided that bitcoin was able to hit the $43,000 resistance zone – which is the 0.5 Fibonacci retracement resistance level, not to mention a horizontal area – this translates to a breakout from the channel that is pretty much imminent.  

BTC wave count  

Meanwhile, the most probable wave count according to TradingView’s chart is suggestive that the decrease during the September 7-21 period was a completed A-B-C corrective structure. If that would be the case, A:C is pretty tight to a 1:1 ratio.   

The chart pointed out, however, that the resulting bounce does not seem to appear impulsive. Hence, this one seems to project some skepticism on the possibility of this being a correct count. Further, an alternative to this is that it could be that the entirety of the decrease was included in a so-called W wave, showing that bitcoin is within a complex corrective structure and is as of late in the process of completing an X wave.  

Additionally, a 1-2/1-2 wave formation is seemingly present on this one, though so far, it is quite unlikely. Hence, as of the moment, one can’t tell the exact wave count for bitcoin.   

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Andrew Smithhttp://thecoinrepublic.com
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing

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