Back

Bitcoin Breaks Out but Is Stopped Short of New All-Time High

author avatar

Written by
Valdrin Tahiri

editor avatar

Edited by
Kyle Baird

25 November 2020 09:04 UTC
Trusted
  • Bitcoin has broken out from a symmetrical triangle.
  • The price is following a parabolic ascending support line.
  • BTC is likely in the final sub-wave of the final wave of a bullish impulse.
Promo

On Nov. 24, BTC broke out from a symmetrical triangle and proceeded to reach a high of $19,418.

The price has returned to validate the breakout level since and is expected to continue moving upwards.

 

Sponsored

Bitcoin Turns On the Heat

The BTC price had been trading inside a symmetrical triangle since Nov 18.

Yesterday, the price broke out from this triangle, returned to validate it as support (shown with the green arrow below), and has begun to move upwards.

Both the RSI and MACD support a continued price increase.

A breakout that travels the entire height of the pattern would take BTC slightly above $20,000.

BTC Breakout
BTC Chart By TradingView
Sponsored

Future Movement

The daily chart shows just how overextended this rally has become. The price has been following a parabolic ascending support line since the beginning of September and is currently nearing the all-time high resistance area of $19,500.

Besides generating numerous bearish divergences, the RSI has been overbought for 36 days without dropping and the Stochastic oscillator is very close to making a bearish cross.

However, as long as the parabolic support line stays intact, BTC is expected to continue increasing.

BTC Extended Rally
 BTC Chart By TradingView
Sponsored

BTC Wave Count

The BTC price is likely in the fifth-and-final wave of a bullish impulse (shown in orange below). In addition, it is likely in the fifth-and-final sub-wave (red) of this same impulse.

The most likely area to act as the top is found between $20,855-$21,000. This is an area that coincides with the 3.61 Fib extension of sub-wave 1 and the projection of sub-waves 1-3 to the bottom of sub-wave 4.

BTC Wave Count
BTC Chart By TradingView

If the count is accurate, the minor sub-wave count (shown in black) would be similar to that shown in the chart below. This could indicate that BTC has two more legs to the upside before it reaches a top.

Sponsored
BTC Tiny Wave Count
BTC Chart By TradingView

Conclusion

The BTC price is expected to continue increasing and possibly reach a high near $21,000 before beginning a corrective movement.

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

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.