Bitcoin (BTC) Breaks Down – Is The Bottom Close?

Bitcoin (BTC) decreased considerably on Nov 18 and reached a low of $55,600. However, it is likely nearing the end of its correction.


BTC has been moving downwards since reaching an all-time high price of $69,000 on Nov 10. On Nov 17, it bounced at the support line of the channel and the $59,700 horizontal support area. 

However, the bounce was short-lived and BTC broke down from both the channel and the support area on Nov 18. This led to a low of $55,600 the next day.

Chart By TradingView

Has BTC reached a bottom?

A look at the wave count and Fib levels suggests that a bottom is close. 

BTC seems to be in the C portion of an A-B-C corrective structure (black). This is the final portion of the correction, after which an upward movement is likely. 

More interestingly, there is very strong support near $54,500 – $56,300. This is the 0.382 Fib retracement support level (white), and would give waves A:C a 1:1.61 ratio. The latter is extremely important, since waves A:C often have either a 1:1 or a 1:1.61 ratio. Since the 1:1 ratio did not hold, the 1:1.61 is the most likely one.

Short-term count
Chart By TradingView

This possibility is supported by a look at the MACD and RSI. Both have generated bullish divergence. This is an occurrence in which a price decrease is not accompanied by the same decrease in technical indicators. It often precedes trend reversals.

Short-term divergence
Chart By TradingView

Long-term count

The long-term wave count still suggests that the entire movement since July is a massive 1-2/1-2 bullish formation. This means that the rate of increase is expected to accelerate once BTC completes the ongoing correction. 

Currently, BTC is in sub-wave two (yellow) of wave two (white). Afterwards, sub-wave three of wave three is usually the sharpest of the entire upward waves. This would be expected to take the price well into a new all-time high.

BTC count
Chart By TradingView

For BeInCrypto’s previous Bitcoin (BTC) analysis, click here.


All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto’s Senior Analyst.

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