Bitcoin Adds 10% In a Day, Reaches Long-Term Resistance

Share Article
In Brief
  • Bitcoin has reached a long-term resistance at $16,100.

  • There is no clear weakness present yet.

  • The price could be in the fifth-and-final wave of a bullish impulse.

  • promo

    BIT Launchpad: Up To 3,500 FREE BIT. Don’t Miss The Beat. Join Now!

The Trust Project is an international consortium of news organizations building standards of transparency.

The Bitcoin (BTC) price created a bullish engulfing candlestick on Nov 5, reaching a high of $15,570 to mark a 10% gain for the day.

Sponsored



Sponsored

While the price has reached an important resistance area that could act as the top, there are no signs of weakness yet in the trend.

Bitcoin Long-Term Resistance

The Bitcoin price is approaching a significant resistance area at $16,145. The area is the 0.786 Fib level of the entire previous decrease and a previous resistance area.

Sponsored



Sponsored

The price has yet to show any long-term weakness and is currently in the process of creating a bullish candlestick with a negligible upper wick.

BTC Chart By TradingView

Current Increase

The daily chart shows the bullish engulfing candlestick created yesterday, which measured an increase of 10%. Today, the price reached a high of $15,968 before pulling back a bit.

Technical indicators do not yet show any weakness. There is no bearish divergence and the RSI, Stochastic oscillator, and MACD are all increasing.

BTC Chart By TradingView

Similarly, the shorter-term two-hour chart does not show clear weakness, even if the rally has become parabolic.

While the RSI and MACD are oversold, neither has generated a bearish divergence, allowing for the possibility that the upward movement will continue.

BTC Chart By TradingView

Wave Count

As for the wave count, it is likely that BTC began a bullish impulse on Sept  7, and is currently in the fifth-and-final wave of this formation (shown in orange below).

BTC has already reached two important Fib resistances, the 4.61 Fib of wave 1 and the 0.618 Fib of waves 1-3, which means that a top could be near. These resistances also coincide with the long-term $16,100 resistance outlined in the first section.

Despite this, there is no weakness found in technical indicators.

BTC Chart By TradingView

A closer view also reveals a possible completed five sub-wave formation (blue), which if correct, would complete the aforementioned wave 5.

BTC Chart By TradingView

Conclusion

To conclude, while the BTC price has reached an important Fib and horizontal resistance level which would be expected to act as the top, there is no weakness yet to suggest that the trend will reverse.

For BeInCrypto’s previous Bitcoin analysis, click here!

Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Share Article

Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

Follow Author

Market signals, studies and analysis! Join our Telegram Today!

Go

Bit2Me ICO JUST STARTED! Buy B2M token now.

Buy now!

BIT Launchpad: Up To 3,500 FREE BIT. Don't Miss The Beat.

Join Now!