Briefly –
- Bitcoin broke down from horizontal support level at $44,000.
- Daily time-frame technical indicators suggest bearishness.
- For now, BTC has a support area at $40,800, then $38,000.
Bitcoin saw a considerable loss on 20 September, breaching the support at $44,000 during the process. The flagship digital currency rebounded following a $40K support hit and formed a lower wick. For now, the asset has its primary support zone near $38,000.
Ongoing Bitcoin Crash
BTC sustained drastic drops on 20 September, forming a massive bearish candle after declining under the $44K zone, its previous support. For now, this price area might serve as a resistance zone. Meanwhile, Bitcoin has secure support beyond the 0.5 Fibonacci retracement area at $40,800 before forming a lower wick.
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Despite the price bounce, technicals depict bearishness. The RSI and MACD are falling, the former moving under the 50-level. Moreover, the Supertrend displays bearishness. With another drop, Bitcoin will have its massive support around $38,000, the 0.618 Fibonacci retracement level.
Future Movement
According to the 6-hr chart, both the MACD and RSI support bearishness. However, it depicts a possible descending channel with a support level around the 0.618 Fibonacci retracement zone at $38,000. That shows that Bitcoin has union support near $38K that might support a bounce back when the token hits the price area.
Also, the 2-hr chart does not show bullish gestures. With that, the leading crypto has higher chances to hit 0.618 Fibonacci retracement support at $38,000. For now, market players can expect BTC to plunge in the upcoming sessions unless massive upside catalysts appear.
Wave Count
According to the wave count, Bitcoin trades in wave C of the ABC corrective configuration. Meanwhile, the dominant crypto has a higher probability of hitting the target lows ranging from $37,931 and $38,755. The target results from the 0.618 Fibonacci retracement support and giving A: C 1:1 ratio. While writing this, Bitcoin is yet to hit this target.
Meanwhile, the sub-wave count suggests that the latest plunge and bounce were a fragment of sub-wave three, and Bitcoin trades in sub-wave four at the moment. Increased plummets to the previously highlighted target at $38,000 will confirm the entire narrative.
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