Exclusive Bitcoin (BTC) Breaks Out Above $60,000 but Fails to Sustain Highs

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In Brief
  • Bitcoin has potential support levels at $59,500 and $56,500.

  • Daily and short-term indicators are bullish.

  • Bitcoin is likely in an extended fifth wave.

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The bitcoin (BTC) price briefly moved above $60,000 on April 1 but decreased shortly after.

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Bitcoin is expected to validate the $59,500 area as support and gradually increase towards a new all-time high.

Bitcoin Reaches $60,000

The daily chart shows that BTC has been increasing since March 25. Yesterday, it briefly broke $60,000 before retracing slightly. 

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However, BTC has yet to reach a close above the $59,500 resistance area. It has not done so since it reached an all-time high on March 13.

Nevertheless, technical indicators are bullish. This is evidenced by the bullish reversal signal in the MACD and bullish cross in the Stochastic oscillator.

Therefore, the trend is likely bullish and BTC is expected to reach a new all-time high price.

BTC Chart By TradingView

Short-Term Movement

The short-term chart shows that BTC has already broken out above $59,500. Currently, it’s in the process of validating this level as support. 

In addition, the RSI has broken the bearish divergence trendline and the MACD is moving upwards. This aligns the short-term readings with those from the daily time frame. 

Besides the $59,500 area, the next support is found at $56,500.

BTC Chart By TradingView

Bitcoin Wave Count

The wave count suggests that bitcoin is in wave five (white) of a bullish impulse that began in March 2020.

The sub-wave count is shown in orange. 

While a previous target was given at $70,000, it seems that sub-wave five will extend. 

Therefore, the next most likely target is likely between $83,500-$90,000. The upper portion of this target is found by using Fib projections on waves 1-3 and sub-waves 1-3 (white and orange Fib).

In addition, the lower number of this target range was found by using an external retracement on sub-wave four.

BTC Chart By TradingView

There is a distinct similarity between the movement that broke the current all-time high and that which broke the previous all-time high of $20,000. 

While both initially seemed to be sub-wave fives, they extended. Therefore, what followed after the retracement from the first breakout was a very significant upward move that led to the current all-time high. 

It’s possible that the same will happen this time around.

BTC Chart By TradingView

The minor sub-waves (black) for both movements are shown below.

BTC Chart By TradingView

Conclusion

Bitcoin is expected to validate the $59,500 area as support and move towards a new all-time high price.

For BeInCrypto’s previous bitcoin (BTC) analysis, click here.

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.
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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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