Bitcoin is in a downtrend but markets do not continue falling in the same direction. At the current support level, market has the potential to correct the move towards the resistance level priced at 24,000. It should be noted that the market is still ranging between two price points of 18,000-24,000. The trend is still bearish.

The descending trendline has a time span of almost 6 months which has broken out for buys. Market has validated the breakout buy and started to range.

There is no retracement factor in this current setup.

EMA 50 is still bearish and we may see the corrective move tap the EMA 50 as a retest. We can set the profit target at the retest of the EMA. Other than this, we can look at the EMA 50 as getting flattened, which indicates stagnancy.

RSI is at 44, which is the bearish region. We can either wait for the market to move above the 50 level or we can wait that it falls below the over sold level and form bullish divergence.

Bitcoin making a corrective move

Oct 08 2022