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Mar 9, 2021 06:54 Bitcoin (BTC) Breaks Through Crucial Resistance

 

Bitcoin Attempts Reversal


BTC has been moving upwards since bouncing at the $44,500 support level on Feb. 28. 

While the upward move looked to have stalled on March 3, BTC created a strong bullish candlestick on March 8. It has moved back above the March 3 high today. 

Technical indicators have turned completely bullish. The RSI has clearly bounced at the 50-line and the Stochastic oscillator has begun to turn upwards. It is currently close to making a bullish cross. 

Furthermore, the MACD has given bullish reversal signals. The prior two times this occurred (green arrows), the MACD crossed into positive territory and initiated a significant upward movement.

Therefore, it’s possible that the same will happen this time around.

BTC Chart By TradingView

 

Short-Term Movement


The six-hour chart shows an ongoing breakout above the 0.618 Fib retracement level at $52,500. This is crucial, as BTC had been trading below this line since Feb. 24. 

The 0.618 Fib level often acts as the top of retracements after a sharp drop. Thus, reclaiming it is a very positive sign. 

On top of that, both the MACD and RSI are increasing.

BTC Chart By TradingView

The two-hour chart shows that BTC is potentially trading inside a parallel channel. Currently, it has just moved above the channel and has invalidated numerous potential bearish divergences. 

Therefore, it’s likely that the short-term trend is also bullish. 

However, movement contained inside parallel channels is often corrective. Iff BTC were to get rejected by the resistance line of the channel near $57,000, it could suggest that another low awaits. 

On the other hand, a breakout above this channel would likely take BTC towards a new all-time high. 

In either case, BTC is expected to increase to the resistance line of the channel. This target is currently near $57,000.

BTC Chart By TradingView

 

Wave Count


The most likely wave count suggests that BTC is in the fifth and final wave (orange) of a bullish impulse. 

The most likely target for the top of the move is found between $67,869-$71,884. 

The sub-wave count is shown in black.

A decrease below the sub-wave two low at $42,300 would invalidate this particular wave count and indicate that BTC is correcting instead.

BTC Chart By TradingView

 

Conclusion


Bitcoin is expected to increase at least until it reaches the top of the parallel channel near $57,000. A breakout from the channel would likely lead to a new all-time high price.

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