After failing for two weeks, Bitcoin (BTC) finally broke the $ 51,200 resistance area.
Technical indicators are turning bullish and BTC is gradually rising towards the next resistance area at $ 57,250.
BTC explodes
On August 23, BTC peaked at $ 50,500. However, it was rejected by the 0.618 Fibonacci Retracement Resistance Level and created a candlestick shooting star.
After consolidating for nine days, BTC started an upward move and moved above this area on September 5. So far, it peaked at $ 52,920 on September 7.
Technical indicators are bullish. While the RSI had previously generated a significant bearish divergence, its trend line has now been broken. Furthermore, the MACD created two successive higher momentum bars.
closest resistance is at $ 57,250. This is both a horizontal resistance area and the 0.786 Fibonacci Retracement Resistance Level.
Future movement
A look at the times lows shows that the $ 50,500 area should now act as support, as it acted as resistance before the breakout.
Similar to the daily time frame, the six-hour chart shows a breakout of the bearish divergence trend line, this time at the MACD rather than the RSI. RSI has just moved above 70, which can be seen as another sign of strength.
wave count
wave count suggests that BTC is in wave five of bullish momentum (orange). most likely target for the top of the bullish move is near $ 57,100. This goal is a confluence of Fib levels that include:
- 1.61 wavelength one (black)
- 4.21 wave one extension (orange)
- 0.786 Fiber recoil resistance level (white)
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In the BeInCrypto wave count analysis, we also describe a potential corrective count. However, the short-term move would be the same as the bullish count presented.
For BeInCrypto’s previous Bitcoin (BTC) analysis, click here.
Disclaimer
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