Bitcoin forms a bullish candlestick pattern on the weekly timeframe, indicating a potential trend reversal. The price of BTC has been steadily rising since early 2023, reaching a high of $48,969 following the approval of a spot Bitcoin ETF. This high was reached near the 0.618 Fibonacci retracement level, suggesting strong resistance. However, the price then experienced a pullback, forming a bearish weekly candle. This week, the price fell below $40,000, indicating a further decline. The Weekly Relative Strength Index (RSI) is also showing a bearish signal, dropping below 70 and continuing to move downward.
Analysts and traders on Platform X are generally pessimistic about BTC’s short-term trend. Altcoin Sherpa predicts that BTC will fall until it reaches the 0.382 Fibonacci support level at $36,400. CredibullCrypto and TheTradingHubb are bearish on the wave chart, suggesting the potential for another low. However, IncomeSharks is more optimistic, predicting that BTC will rise to $44,000 in the short term.
Analysis of the 2-day timeframe suggests that BTC will still undergo a correction. Elliott wave analysis indicates that BTC is currently in the fourth wave of a five-wave upward movement. The correction is expected to end in March-April, reaching the 0.5-0.618 Fibonacci retracement support levels at $37,100 and $34,200. Sub-wave analysis suggests that BTC is still correcting in wave A of the ABC correction structure, with a potential 8% further decline to the 0.5 Fibonacci support level at $37,100 before rebounding.
On the other hand, if the price recovers above the $41,000 resistance area, it may indicate that the local bottom has been reached. In that case, Bitcoin could rise by 10% to the nearest resistance level in the range of $43,800-$45,000.
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