Bitcoin price hit the monthly high of $ 50,500 on August 23, 2021. The Bitcoin price has already fallen before the resistance area at USD 51,200.
Bitcoin price still follows an ascending support line. However, it is quite possible that the Bitcoin price has already reached the last local top.
Bitcoin price daily chart analysis
The Bitcoin price has risen since July 20, 2021. On August 23, 2021, the BTC price then peaked at USD 50,500. After that or on the same day, however, the BTC price fell again pretty quickly. That’s why you can see a long, upper wick on the corresponding day candle. The next day the Bitcoin price fell again. Due to the shape of the last two day candles, there is an evening star pattern to be seen, after which a correction phase usually follows.
The high is near the horizontal resistance area at USD 51,200 or near the 0.618 fib retracement level.
In addition, there was already a bearish divergence on the RSI and on the MACD before the last drop. The MACD also gave us a bearish reversal signal.
BTC price short-term outlook
The 6-hour chart also shows bearish divergence on the MACD and RSI. Bitcoin price also followed an ascending support line that has been intact since the aforementioned low on July 20, 2021. The BTC rate is currently slightly above the line.
Should the Bitcoin price break below the line, then we could see a strong and rapid downward movement that could end at the next support level at USD 42,371. The 0.382 fib retracement level is also found in the horizontal support area.
Bitcoin course wave analysis
The correct wave count cannot yet be clearly established. There are two possibilities. On the first, the Bitcoin price has completed the third wave of a bullish impulse. In the other, the BTC course has completed an ABC correction.
Should the third wave be over then we will most likely see a short and strong correction. Since the BTC price rose relatively slowly and in a straight line in the second wave, the third wave will fall quickly and strongly due to the principle of alternation of the Elliot Wave Theory.
In the scenario with the ABC correction structure, we would also see a short-term downward movement. However, it would then fall longer and reach other lows. In both cases, the Bitcoin price will fall in the short term.
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Translated by Maximilian M.
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