AU$ 60,000 And Counting – With Caroline Bowler
Bitcoin: what level will determine the fate of the march north
Bitcoin has made a bullish breakout of a short-term bullish channel, but is trading within a longer-term channel.
BTC Faces 200-Day MA Resistance.
The next immediate resistance is in the $ 8400- $ 8500 area.
On April 29, Bitcoin made a bullish breakout of the short-term bullish channel, within which it remained for the last 5 days. The price reached a maximum of $ 7966 and retraced slightly.
The bitcoin (BTC) rate made five unsuccessful attempts to break the resistance line, and now the sixth has brought him success. The breakout occurred against the background of trading volumes exceeding the average. Since then, the price has been trying to deal with this resistance by turning it into support.
The hourly RSI is deep in the overbought zone, but has yet to start giving any bearish divergence signals. This suggests that the pair may continue to grow for some time..
The bitcoin rate has been trading within a long-term upward channel since March 20. As of this writing, the price is holding in close proximity to several resistance levels, namely:
- Fibo level 0.786 correction of the previous decline
- 200-day MA
- Channel resistance line
Thus, it is possible that the price will reverse at current levels and begin to decline towards the support line.
On the other hand, the next resistance area is located in the $ 8400- $ 8500 area.
This is the maximum height that BTC can reach in the scenario that considers the price dynamics of the currency as a correction..
A break above this level will signal that Bitcoin has really started a new phase of growth..
According to our long-term wave analysis, the BTC rate is now in the 4th wave of the five-wave Elliott pattern. Accordingly, the price may soon reach a top and then sink to new lows..
This fourth wave is represented in the A-B-C formation (green on the chart) with a 3-3-5 wave pattern (blue). In this case, BTC is now in the fifth wave stage and is very close to reaching the top..
The fifth wave also stands out within the five-wave Elliott pattern (yellow). Within this model, the price. Most likely inside the third wave.
In this case, the base scenario will be a rollback, in which the pair will not go below $ 7500 (the tops of the first wave), after which it will begin to grow in the direction of $ 8500.
Thus, the bitcoin rate is trading within a long-term upward channel and has reached a very important resistance level. According to the wave analysis, the price is about to form a top. The maximum level that BTC can reach within this wave pattern is in the $ 8400- $ 8500 area. Its breakdown will mean the cancellation of this wave scenario.
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