Is this the start of a stronger correction for Bitcoin (BTC)?

Bitcoin rejected by its Kijun Daily?

While this decrease results from a rejection at the Kijun Daily dish at $ 47,800, price now appears to be testing strong support.

The weekly Bitcoin chart (Daily)

The weekly Bitcoin chart (Daily)

Currently, the Chikou span is faced with a daily Kijun dish at $ 43,928 which represents a support that it would be better not to break on the downside. As long as the price holds this level at the close, a rebound is still possible. In the event of a downward breakout of this support, the BTC should on the other hand come to seek the bottom of the cloud around $ 41,210.

A symmetrical h4 widening pattern

On a smaller unit of time, we can see that Bitcoin moves precisely within this symmetrical hollow widening pattern in h4. A pattern which already has four releases on the high trendline as well as three releases on the low trendline.

Bitcoin (BTC) h4 chart

Bitcoin (BTC) daily chart

As long as the price will hold its $ 43,400 support, a rebound will remain probable to return to seek the middle of the range at $ 45,942 then the top of the pattern towards $ 49,500. Attention should therefore be paid to the behavior of the price in contact with this support.

It is only in case of break down that the first breakout target to $ 41,970 will be activated. In the event of a steeper drop, the price should pick up the bottom of the cloud Daily mentioned above, then the second target of this pattern at $ 38,532.

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In conclusion

Bitcoin (BTC) absolutely must bounce back on its low trendline in h4 in order to be able to quickly return above $ 49,000. If the pattern breaks from the bottom, the correction should continue.

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About the Author : Tagado

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Passionate about crypto-currencies since 2017 and a fervent defender of knowledge sharing, I am a YouTuber, crypto analyst and regular trader. Each week, my role is to make you aware of technical analysis by giving you my point of view on the evolution of Bitcoin and Ether prices, using my favorite indicators such as Ichimoku as well as chartist patterns.
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