Bitcoin entered a rally after its local low at $ 9,825.
Short-term technical indicators show considerable bearish divergence.
BTC price is probably still in wave 4 which could end at $ 10,480.
The price of Bitcoin (BTC) has been rising since its trough in 9825 $ September 5.
That said, this rally is not very convincing, and suggests that another fall below the aforementioned low may take place.
Bitcoin rally shows weaknesses
Bitcoin’s price rallied from a low of $ 9,825 on September 5. This upward movement was preceded by a considerable bullish divergence in the RSI, within the six-hour time scale.
Price is currently at $ 10,300, but the rally is showing signs of weakness.
There is bearish divergence in the MACD, RSI and Stochastic RSI. The latter also formed a bearish cross. This is a sign that the rally should come to an end and that the price may come down soon.
The hourly chart gives us a similar view, knowing that there is an even more pronounced divergence in these three indicators. Likewise, the RSI and MACD show a considerable decline.
If price breaks below its current short-term rising support line, this would confirm that it will likely continue to decline
Due to the duration of wave 4, relative to the previous wave 3, the price may be correcting in a complex structure in WXY (in red). The end of this wave would be near $ 10,490, based on the length of Wave X.
Further analysis of Wave Y gives us a very similar target, indicating that price will soon reach a limit. If it crosses below the ascending support line outlined in the first section, this would confirm that the price has started its downward movement.
In conclusion, the price of Bitcoin should rise towards the $ 10,500 before falling and falling below the $ 9500 zone.