Bitcoin price is breaking above an ascending resistance line.
It enjoys minor support at $ 49,500.
BTC is in the final sub-wave of its wave three
On February 16, Bitcoin broke the $ 50,000 mark, rising to a high of $ 50,689. It continued its ascent on February 17, hitting a new all-time high of $ 51,280.
The price of Bitcoin is probably in the final part of its upward movement, but it could increase up to $ 55 000 before correction.
Bitcoin exceeds $ 50,000
On February 15th, BTC created a hangman candlestick , which can be interpreted as a sign of weakness when it appears in an uptrend.
BTC however created a bullish candlestick the next day, peaking at $ 50,689 before declining slightly. The BTC price started on February 17th with a sharp rise. So far, it has hit a new record high of $ 51,280.
Technical indicators are also bullish. The Stochastic Oscillator and MACD resumed their upward movement, while the RSI rebounded above 70.
The two hour chart shows that BTC is breaking above an ascending resistance line, which has been in place since February 8th.
Additionally, Bitcoin broke through the horizontal area at $ 49,500 and then validated it as support (green arrow).
Both the MACD and the RSI support the possibility of a breakthrough above resistance, especially given that the MACD has moved into positive territory. Thus, BTC is expected to break through its ascending resistance line and continue to rise.
The wave count suggests that BTC is approaching the top of wave three (in orange), and which has a target between $ 55,000 and $ 56,000. This range is obtained by using the length of sub-wave one (in black).
Although this is the most plausible target, BTC appears to be in the final part of its current upward movement. It is not yet known if he will hit $ 55,000 before falling and starting a corrective wave four (in orange).
A decline below the top of wave one, to $ 38,640, would negate that wave count.
For a longer term count, click here.
Bitcoin’s price is expected to continue rising towards the $ 55,000 to $ 56,000 range, before a potential drop.