Bitcoin (BTC) drops briefly below $30,000 before rising again
- The Bitcoin course has a support at $29,000 and a second one at $26,000.
- The indicators on the daily chart are bearish.
- The BTC has likely completed the first phase of a long-term corrective structure.
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The price of Bitcoin (BTC) declined significantly on January 21, dropping briefly to a local low of $28,800 in the early hours of January 22.
Despite this fall, it is likely that at least the first phase of the corrective movement is now complete. Bitcoin is likely to rise in the short to medium term.
Bitcoin bounces back to its support
On January 21, Bitcoin declined by more than $5,000 from a high of $35,600 to a low of $30,000.
The descent first resumed on January 22nd, but the BTC rebounded to a Bitcoin Profit fibonacci retracement of $0.5 to $29,000. It is now in the process of creating a bullish candlestick with a long lower wick.
Despite the rebound, technical indicators are firmly bullish.
The MACD has turned into a terrific negative, the daily RSI has dropped below 50, and the stochastic oscillator has formed a bearish cross.
If the BTC loses the $29,000 support zone, the next support would be at $26,000 (fibonacci retracement level 0.618).
In BeInCrypto’s Bitcoin analysis of January 21st, it was said :
A move below the $34,000 support and the symmetrical triangle would probably confirm that the BTC will continue to decline, perhaps towards $29,000.
The January 21st drop brought the BTC down to the 0.5 fibonacci level at $29,000, providing a 1:1 ratio for the X:Y waves (in orange).
That said, the long-term count remains bearish. It is therefore more than likely that this is only the first part of the corrective structure.
This would mean that the BTC will eventually decline further, probably towards 22,969 (fibonacci level 0.5).
That said, this movement can take many different forms, so it seems futile to speculate on which one will be the correct one. Nevertheless, a significant rebound is likely before the downward trend resumes.
The short-term graph shows that despite initial signs of a bullish turnaround, as shown by the bullish divergence in the RSI, a turnaround is not yet confirmed.
A rebound in the $31,400 zone would probably confirm that the turnaround has begun and that the BTC will continue to rise.
In addition, there is solid support at $28,200. Thus, even if the BTC is rejected and falls to a slightly lower trough, one would expect it to rebound at that level.