Bitcoin (BTC) rallies again, runs to new highs

Bitcoin (BTC) broke out of a short-term bearish pattern and validated it as support later, suggesting that the ongoing correction is complete.

BTC has been down since October 20, when it hit an all-time high of $ 67,000. Since then, it has hit a local low of $ 57,520 on October 28.

BTC rallied to the 0.382 Fibonacci retracement support level and has moved higher since hitting lows.

Despite the continued rise, technical indicators are not bullish yet. Both the RSI and MACD are falling, which can be seen as a sign of a weakening trend.

decline in the MACD is of particular concern as the indicator has generated 12 successive bars of lower momentum. This is a sign that the short-term trend is losing strength compared to the long-term one. A decline in the histogram into negative territory would be a major bearish sign.

However, BTC has potentially started a bullish move that could reverse this downtrend on the MACD.

Current break

daily chart shows that BTC broke out of a parallel descending channel and validated it as support afterwards (green icon).

This is a very bullish sign that the ongoing correction is complete and that BTC is likely to rise.

re is resistance at $ 63.530, created by the 0.618 Fibonacci Retracement Resistance Level. A break above would confirm that the correction has come to an end.

Read also SEC regulation on cryptocurrencies ‘will harm American innovation’, says congressman

BTC wave count

most likely wave count suggests that BTC is in a large 1-2 / 1-2 wave formation. This means that it is currently in the third wave of a five-wave upward movement and the rise is expected to accelerate significantly.

However, the problem with this count is that the second wave is quite short. So the first wave (orange) may not be over yet.

alternate count would suggest that BTC is in sub-wave five (black) of the same upward move. That would mean it could peak near $ 73,000 before correcting.

Either way, both counts suggest that BTC will soon hit a new all-time high and have the same long-term outlook. It is only the short-term outlook that differs slightly.

For BeInCrypto’s previous Bitcoin (BTC) analysis, click here.


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