Bitcoin (BTC) increased slightly on Sept 29 but failed to sustain its upward movement. However, it rose above $ 43,000 on September 30 before falling back slightly.
BTC has broken out from a short-term descending resistance line and is in the process of moving towards the next closest resistance area.
BTC tries to recover resistance
BTC is currently trying to break above the $ 44,000 area, which previously served as support but has now turned into resistance.
Technical indicators in the daily time frame are showing some bullish signs, such as the higher momentum bar in the MACD. However, the RSI is still below 50 and the MACD is still negative.
Descending channel
The six-hour chart shows that BTC is trading inside a descending parallel channel since the initial drop on Sept 7.
Currently, it is trading in the upper part of the channel after rebounding at its midline and the 0.5 Fib retracement support level.
Furthermore, the MACD and RSI are both moving upwards. When combined with the fact that parallel channels usually contain corrective structures, a breakout would be the most likely scenario.
The two-hour chart shows that BTC has already broken out from a descending resistance line, which was part of a symmetrical triangle.
Additionally, it has recovered the minor resistance area of $ 43,000 and is validating it as support.
The upward move is supported by both the RSI and MACD.
Therefore, it is likely that BTC will rise in the short term.
Wave count
The most likely count suggests that the current decrease is an A-B-C corrective structure (orange), in which waves A:C have a 1:1 ratio. However, as the upward movement does not seem impulsive, it does not appear that the correction is complete.
Therefore, it would make sense that BTC is still in a complex corrective structure and is currently in the X wave (black).
An increase to $ 45,550 would hit the 0.5 Fib retracement resistance level of the entire downward movement and give short-term A: C waves a 1: 1 ratio.
Therefore, it would be likely that BTC gets rejected if it makes it to $45,550.
