Bitcoin (BTC) Hits Highest Price Level Since March 2

Bitcoin (BTC) has broken out from two short-term resistance levels and is in the process of validating them as support.

BTC has been increasing alongside an ascending support line (dashed) since Jan 24. It validated the line for the final time on March 14 before beginning the current upward movement. 

While it is possible that BTC has broken out from a descending resistance line, the exact slope of the line is not clear due to the presence of long upper wicks. As there is very strong resistance at $44,500, a breakout above this level would be required in order for the trend to be considered bullish.

Technical indicators in the daily time frame are bullish, supporting the possibility that BTC will break out. The MACD is increasing and has crossed into positive territory. The RSI is moving upwards and is above 50. Both of these are considered signs of a bullish trend.

Short-term BTC movement

The six-hour chart supports the continuation of the upward movement. 

Besides the aforementioned descending resistance line, it shows that BTC has already broken out from an ascending parallel channel. It is currently in the process of validating it as support (green circle). 

Since the resistance line of the channel coincides with the longer-term descending resistance line, it is crucial that the price stays above this level. 

If so, an attempt at breaking out above $44,500 would be expected.

Wave count analysis

The most likely wave count suggests that BTC has begun wave C of an A-B-C structure. Wave B took the shape of a symmetrical triangle.

The sub-wave count is shown in white. 

If the count is correct, the price has begun an upward movement towards $50,600, giving waves A:C a 1:1 ratio.

The alternate count indicates that BTC is still in wave B, and will begin wave C after one final drop.

In any case, an eventual movement above $50,000 seems likely. 

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

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