Bitcoin failed to close the week of Feb 7-14 on a positive note, building a candle with a prolonged upper wick instead. After all, the interim readings suggest a retraction could presently occur.

After originating a bullish candlestick during the week of Jan 31-Feb 6, BTC decreased slightly the next week, producing a bearish candlestick with a very lengthy upper wick. 

When measuring the entire descending evolutionment, the $45,821 local BTC excessive is very close to the 0.382 Fib retracement resistance level at $46,700, that is still a horizontal resistance field. 

Therefore, it’s likely to act as the main resistance level now.

BTC Drop
BTC Chart By TradingView

Technical indicators

The daily chart shows that BTC was rejected by the 0.618 Fib retracement resistance level (red icon) although measuring the most recent portion of the descending move. This resistance is found at $44,900. 

Technical indicators are showing some bullish signs. This is especially visible in the RSI, that has moved atop the 50-line. This line is contemplated a threshold for whether the trend is bullish or bearish. 

Similarly, the MACD is moving skywards but is not yet positive. This would be another sign which the trend is bullish.

BTC Daily
BTC Chart By TradingView

The six-hour chart shows which BTC has fallen back within an surging equivalent channel. Previously, the channel contained the progress from Jan 24, until it broke out on Feb 8.

Currently, BTC is dealing right at the midline of the channel, that is reasonable to provide support. 

Unlike the daily time frame, both the MACD and RSI provide neutral readings. 

BTC six-hour
BTC Chart By TradingView

The two-hour chart is a bit more bullish. 

Besides exchanging right in the middle of the channel, both the RSI and MACD have genecostd considerable bullish variances (green line). This is an occurrence which often precedes high skyward progresss.

Short-term BTC
BTC Chart By TradingView

BTC wave count analysis

The most expected protracted-term wave count indicates which BTC has already captured a bottom. The momentary count (red) suggests which BTC has finished wave four of a five-wave ascending diagram. The sub-wave count is shown in black. 

The Feb 14 low was made right at the 0.5 Fib retracement level while measuring the entire wave three (white) and gave sub-waves A and C a 1:1.61 ratio, a suitable level for a low to be realized. 

BTC Wave count
BTC Chart By TradingView

Supposing that wave five has begun, the most inclined target for the top of the is estimated between $47,625 and $47,912. This area is found by projecting the length of wave one and using an external retracement on wave four.

After this, BTC could correct in the short/medium term.

BTC Chart By TradingView

CryptCraze’s previous Bitcoin (BTC) analysis, click here

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