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