Bitcoin is moving just above the minor support at $ 22,300.
Technical indicators have yet to show signs of a bullish reversal.
BTC could be in sub-wave 5 of its third wave, or it has already started its fourth wave.
Bitcoin’s (BTC) price declined significantly on December 21, momentarily dropping to a daily low of $ 21,815.
That said, the bullish structure remains intact, and Bitcoin Pro price is expected to rise, unless it goes below the invalidation levels described below.
Bitcoin’s ongoing decline
On December 21, the price of BTC dropped significantly from $ 24,102 to $ 21,815. The BTC candlestick has long wicks at each end, a sign of indecision due to both buying and selling pressure.
The movements of the associated technical indicators are also ambiguous. The RSI has just passed below 70 (red arrow below), a sign of a possible trend reversal.
However, the MACD has yet to hit a lower momentum bar and the Stochastic Oscillator is forming a bullish cross.
The six-hour chart shows that despite falling temporarily below this, BTC has managed to maintain above the minor support area of $ 22,300. This is also the 0.382 fibonacci retracement level of the last rise.
BTC created a long wick below this level, almost touching the 0.5 fibonacci retracement at $ 21,686. That said, he managed to close above that level.
The MACD has lost strength and the RSI is declining, but the latter is still above 50 and the MACD is above 0.
The two-hour chart also gives a relatively neutral outlook
The RSI has fallen below 50 and has not generated a bullish divergence, while the MACD maintains its decline.
The most plausible count suggests that BTC is in sub-wave 5 (black) of wave 3 (orange), and is expected to end between $ 25,871 and $ 26,006.
Considering this scenario, the Dec.21 decline looks a lot like a fourth wave pullback , after which an upward movement is expected to complete sub-wave 5.
A drop below the December 21 low, at $ 21,864, would likely cause a passage below the parallel channel and invalidate this scenario.