Bitcoin (BTC) created another bullish candlestick in the weekly timeframe and continued its sustained climb towards a new all-time high. BTC is expected to break out above the USD 57,150 resistance level, which is the last before the all-time high.
The weekly bitcoin chart is shifting towards a bullish outlook. This is mainly due to the technical indicator values and not the price movement.
First, the supertrend line has turned positive. The supertrend is an indicator that uses absolute high and low prices to determine the direction of the trend. When the BTC price is higher than the indicator line, the supertrend is considered bullish. Since BTC has just moved above the supertrend resistance line (green circle), the indicator has become bullish.
In addition, both the RSI and the MACD are bullish.
The RSI, an indicator used to measure momentum, has moved above the 50 line (green symbol). This usually means that the trend is bullish and ends a 77 day period when the indicator was below 50. The last time the RSI crossed above 50 was in April 2020, before the rally to $ 64,000.
The MACD, which is made up of short and long term moving averages (MA), is positive and moving up. In addition, its histogram is almost positive. This means that the short term trend is moving faster than the long term trend.
While BTC does not yet have to regain the ascending support line from which it broke off, the indicator shows. counteract the relatively bearish price movement.
Bitcoin outbreak ongoing
The outlook of the daily chart is the same as that of the weekly chart and shows similar RSI, MACD and Supertrend values.
In addition, the price action is bullish over this time frame.
BTC is in the process of creating a bullish candle in the wick from October 10th. This is a sign that the selling pressure is easing.
Additionally, BTC is approaching the USD 57,150 resistance. This is both the 0.786 fib retracement level and a horizontal resistance area.
If there is a breakout, BTC should have little in the way of preventing a surge towards its all-time high.
The six-hour chart also gives a bullish outlook. First, it shows a breakout from a rising parallel channel, a sign that the trend is bullish and the previous correction has ended.
Additionally, as BTC consolidated below the $ 57,150 resistance area, the RSI created a hidden bullish divergence. This is a strong sign that the trend is continuing. Hence, an outbreak would be the most likely scenario.
After all, the long-term wavenumber is bullish. It indicates that BTC is currently in a 1-2 / 1-2 wave formation. This means that the current rise is only the first part of the upward move which will accelerate significantly after that.
Second, the short-term count shows that BTC is on the fifth and final partial wave of the current surge.
The most likely target for the top is between $ 59,900 and $ 60,650. This target area is determined based on the length of wave one (white) and the lengths of waves 1-3 (black).
For BeInCrypto’s previous Bitcoin (BTC) analysis, click here.
Disclaimer of liability
All information contained on our website is published to the best of our knowledge and belief and only for general information purposes. All actions of the reader in relation to the information on our website are entirely at your own risk.