Bitcoin has created a hammer candlestick in the weekly chart.
Daily technical indicators remain bullish.
BTC has probably started another upward momentum
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The price of Bitcoin approaches a crucial resistance area. If it exceeds it, it would confirm that the trend is upward.
Technical indicators and the BTC wave count suggest that it may be able to break through this resistance.
Bitcoin creates a weekly hammer candle
The week of September 21-28, Bitcoin’s price created a hammer candlestick. Despite a bearish close, the hammer revalidated the $ 10,100 area as support. He left behind a long lower wick as a result, which is a sign of buying pressure.
Technical indicators remain bullish. Both the RSI and the Stochastic Oscillator are on the rise, but have not yet reached the oversold region.
The daily chart shows that price has already created an upper low, followed by a bullish recovery Japanese candlestick. That said, there is very strong resistance at $ 11,150.
In addition to matching an old support area converted to resistance on September 19, this area also coincides with a descending resistance line drawn from the August 17 high. This makes it all the more considerable.
If the price breaks the $ 11,150 area and the descending resistance line, it would help confirm that the trend is up.
Technical indicators in the daily timescale are bullish
The Stochastic Oscillator has formed a bullish cross;
The RSI has passed 50;
The MACD has practically reached positive territory.
A move of the MACD into positive territory would be the final confirmation of the start of an uptrend.
The shorter-term 6-hour chart suggests a bullish situation. After an initial rejection, BTC broke through the 0.618 fibonacci retracement level, and it is currently at the 0.786 fibonacci level.
Technical indicators are bullish. Both the RSI and the MACD are on the rise, and the latter has moved into positive territory.
While it is possible for price to retrace towards the $ 10,500, the most plausible scenario would be for BTC to rise above the $ 11,150 area.
Wave count
The latest rise in BTC increases the odds that it started a bullish impulse (orange below) on September 19, and completed Sub-Wave 1.
It is likely that the impetus at the start of the longer-term Wave 5 (in black) will push the price up to $ 15,000.
A fall below the rising support line in place since July (line 0-2) and below the previous low at $ 10,138 would indicate that this count is likely incorrect. A decline below the top of Wave 1 (dotted red), to $ 9,485 would almost certainly cancel out this bullish account.