Bitcoin (BTC) Closes in on Crucial $45,000 Resistance Level

Share Article
In Brief
  • BTC is approaching resistance at $44,500.

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

  • A breakout from the triangle could take the price to $50,000.

  • promo

    Top Crypto Exchanges Without KYC Read Now

The Trust Project is an international consortium of news organizations building standards of transparency.

Bitcoin (BTC) is showing strong signs of a longer-term bullish reversal but is still trading inside a short-term corrective pattern.

Bitcoin has been increasing above an ascending support line (dashed) since Jan. 24. So far, it has validated the line four times, most recently on March 14 (green icon). The rebound that followed led to the ongoing upward move. 

The price is currently approaching the $44,500 horizontal resistance area, a level that BTC hasn’t traded above since Jan. 5.

Technical indicators in the daily time frame are bullish and support the continuation of the upward movement. Both the MACD and RSI are moving upwards. The former has just moved into positive territory while the latter is above 50. Both of these are considered signs of bullish trends.

If BTC manages to break out above the $44,500 horizontal area, there would be virtually no resistance major resistances apart from the 0.382 Fib retracement resistance level at $46,750.

Short-term BTC movement

The two-hour chart shows that BTC has been trading inside an ascending parallel channel since March 7. Currently, it’s trading just under the resistance line of the channel. 

In addition to this, both the RSI and MACD have generated bearish divergences (green lines), which often precede reversals. 

If a downward movement occurs, the closest support area would be found near $40,500.

Conversely, a breakout from the channel would confirm that the trend is bullish.

Wave count analysis

The most likely wave count suggests that BTC is in wave B of an A-B-C structure (black). Wave B has taken the shape of a symmetrical triangle.

The sub-wave count is shown in white. 

If the count is correct, BTC could experience another short-term dip before resuming its upward movement. A breakout from the triangle could take the price all the way to $50,000.

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.
Share Article

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.

Follow Author