Bitcoin Adds $2,600 to Close a Massive Bullish Week

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In Brief
  • Bitcoin is approaching long-term resistance at $19,645.

  • BTC is following a parabolic ascending support line.

  • There is short-term support and resistance at $17,600 and $18,600 respectively.

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Bitcoin (BTC) increased considerably during the week of Nov 15-22, nearly reaching a new all-time high price.

As long as the current support structure holds, BTC is expected to make another attempt at overtaking its all-time high levels.

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Bitcoin Nears All-Time High

During the week of Nov 15-22, the BTC price increased considerably, creating a bullish candlestick with an open and close of $15,935 and $18,575 respectively. This made for an increase of slightly more than $2,600. 

The price is approaching the primary resistance area of $19,645, near the all-time high price reached in December 2017. 

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Technical indicators in the weekly time-frame suggest that the rally is overbought, but do not yet show any clear signs of weakness due to the lack of a bearish divergence.

BTC Chart By TradingView

Parabolic Support

The daily time-frame shows that BTC has been following a parabolic ascending support line since September.

Yesterday, the price created a hammer candlestick that served to validate the line as support before moving higher. The long lower wick is a sign of buying pressure. 

Technical indicators show a similarly overbought trend and the RSI has even generated a considerable bearish divergence. However, the MACD has not yet done so and the Stochastic oscillator has yet to make a bearish cross, suggesting that the upward move could continue as long as the support line holds.

BTC Chart By TradingView

Short-Term Range

The two-hour chart shows a trading range between $17,600-$18,600. While the price was initially rejected by the resistance area, it created a very long lower wick once it reached support, and followed that with the creation of a higher low (shown in black arrows below).

In addition, the price appears to be stuck under a descending resistance line.

A breakout and retest of this resistance area would likely indicate that the trend is bullish and that BTC is indeed heading towards the all-time high resistance area at $19,450.

BTC Chart By TradingView

Wave Count

The most likely wave count for BTC suggests that the price is in the fifth-and-final minor sub-wave (red) of the fifth sub-wave (orange) of a long-term bullish impulse that began in March.

A possible target for the upward move to end would be between $20,859-$20,999, the 3.61 Fib extension level of minor sub-wave 1 and the projection of the lengths of minor sub-waves 1-3.

BTC Chart By TradingView

If the move transpires as expected, the even shorter-term count would likely resemble the one presented in the chart below:

BTC Chart By TradingView

Conclusion

The BTC price is expected to continue increasing until it reached the all-time high resistance area of $19,450, and could possibly go a little higher.

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

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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.

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