Exclusive Bitcoin (BTC) Bullish Engulfing Candle Suggests Breakout Above $59,500

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In Brief
  • Bitcoin created a bullish engulfing candlestick.

  • BTC is trading inside a short-term descending parallel channel.

  • Daily and short-term indicators are bullish.

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The bitcoin (BTC) price bounced on April 7 and created a bullish engulfing candlestick the next day.

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Bitcoin is expected to break out from the current short-term pattern and the $59,500 area after.

Bullish engulfing candlestick

Despite BTC decreasing on April 7, it created a bullish engulfing candlestick the next day. This is a sign that buying strength is increasing. The April 7 dip has now completely retraced.

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The RSI is trending above 50 and the Stochastic oscillator has made a bullish cross.

Therefore, it’s likely that the trend is bullish.

Chart By TradingView

Bitcoin parallel channel

Since reaching an all-time high of $61,844 on March 13, BTC has been following a descending resistance line. So far, the line has rejected BTC multiple times—most recently on April 4. 

Currently, BTC is making another attempt at breaking out above the line. 

The MACD and RSI are both increasing, therefore a breakout is likely. An increase above this line and the $59,500 area would confirm that the trend is bullish. 

Chart By TradingView

The two-hour chart shows that BTC is trading inside a descending parallel channel. This is often a corrective pattern.

Therefore, the daily, six-hour, and two-hour charts are in alignment.

A breakout from the channel and the $59,500 resistance area afterward is expected.

Chart By TradingView

Bitcoin wave count

The wave count suggests that BTC is in an extended sub-wave five (orange) of a long-term wave five (white). 

A potential target for the top of this movement is located between $83,500-$90,500.

The target is found using a combination of Fib projections (white and orange) and an external Fib retracement (black).

Chart By TradingView

Conclusion

Both long and short-term indicators suggest that bitcoin will break out from the short-term channel. An upward move that takes the price above $59,500 is expected to follow.

For BeInCrypto’s latest 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 is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo. In 2019, he decided to focus full-time on cryptocurrencies and trading.

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