Bitcoin (BTC/USD) has not made a lower low. Price action seems to be respecting the 61.8% Fibonacci retracement level as expected.
But the main question now is: will price action be able to show a bullish reversal? Let’s review the key decision zones and Elliott Wave patterns.
The BTC/USD is testing the 21 ema zone of the weekly chart only for the 2nd time since the uptrend started. As mentioned in our article “Bitcoin 2021 vs Bitcoin 2017: How The Bull Trends Are Similar and Different”, the uptrend in 2017 on the other hand had 6x retests and bounces in this zone, which means that an uptrend is still very probable.
The BTC/USD is also testing the support of the long-term moving averages (144-233 emas). A second retest of the 61.8% Fibonacci level is possible:
On the 4 hour chart, price action was unable to break above the 21 ema resistance zone and resistance trend line (orange):
The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter.
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