Back

Bitcoin (BTC) Fails Fourth Breakout Attempt Above $44,400 Resistance

author avatar

Written by
Valdrin Tahiri

editor avatar

Edited by
Kyle Baird

03 March 2022 08:59 UTC
Trusted
  • Bitcoin has broken out from a descending resistance line.
  • There is strong support at $41,200.
  • BTC is in wave four of a five-wave upward move.
Promo

Bitcoin (BTC) made another attempt at breaking out above $44,400 on March 2 but was unsuccessful. There is ample support below the current price, suggesting that another breakout attempt could occur soon.

Bitcoin has been increasing above an ascending support line since Jan 24. On Feb 27, it rebounded from this support and created a large bullish candlestick the next day. This led to a local high of $45,400 on March 2. 

Sponsored
Sponsored

However, BTC once again failed to break out above the $44,400 horizontal resistance area and was rejected by it for the fourth time (red icons). Since resistances get weaker each time they are touched, an eventual breakout above this resistance seems to be the most likely scenario. 

If a breakout occurs, the next resistance level would be found at $51,100.

BTC breaks out

Sponsored
Sponsored

The six-hour chart shows that BTC has broken out from a descending resistance line prior to reaching the aforementioned high. However, it has yet to move above its February highs of $45,821. 

If a short-term retracement occurs, the closest support area would be found at $41,200. This support is created by the: 

  • Long-term 0.382 Fib retracement support level (white)
  • Short-term 0.5 Fib retracement support level (black)
  • Previous descending resistance line

Wave count analysis

The most likely wave count suggests that BTC began a five-wave upward trend on Jan 24. If correct, it’s currently in wave four of this structure. 

Sponsored
Sponsored

The most likely level for wave four to end would be between $42,500-$43,000 (white circle). 

The area is a confluence of the midline of the channel connecting waves one and two (black), and the bottom of the channel connecting waves on and three (white). 

Following this, the fifth and final upward leg would be expected.

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

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.