By CryptoTargets – The Bitcoin (BTC) course seems to be recovering after last night’s decline. Will bitcoin rise to $10,850 today? Read the Update.
Bitcoin (BTC) 1-hour chart
We see action on the 1-hour timeframe, because Bitcoin Code is bought up. What we see here is a bounce after a third higher low (third white arrow) which brought Bitcoin back over the 8 days MA (Moving Average).
This can be very interesting in the short term. A bounce to $10,850 at the top of the channel in which the price is now moving is possible.
This will then be approximately equal to the horizontal resistance (red line).
Bitcoin 4-hour chart (part 1)
On the 4-hour timeframe we see a good sign. After a bullish divergence (two green lines) on September 23rd the 8 and 14 days Moving Averages haven’t made a cross yet.
This is very favourable for a further increase in the short term. A cross would indicate that it is a good time to sell again.
So even while Bitcoin dropped from $10,850 to $10,640 last night, this is not a sign to sell (short term). This will also be the reason why Bitcoin bought directly into the dip.
Bitcoin 4-hour chart (part 2)
There is a reason why we mention ‘short term’ for a potential increase. After all, if we zoom out again on the 4-hour timeframe and place the indicator fibonacci retracement on the course, we see that Bitcoin is moving in the ‘golden pocket’.
This is the centre of the fibonacci tool where there is always more volatility. Often when there is a small rise after a considerable fall, a price in the centre of the fibonacci makes another retrace.
This is what we also saw on 21 September. The price rose back to the golden pocket and made a retrace there towards $10150 (towards the bullish divergence from the previous piece).
In this case we can only say with more certainty that Bitcoin will continue to rise in the longer term when it moves over the golden pocket.
Because even then, an outbreak can be bigger as it ‘breaks through’ the centre.
Break out $10,850 first
In the short term we can still see an increase towards $10,850 with an outflow to $10,930. If Bitcoin is able to break through this level, we can say softly that a further increase is in the long term.
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