Exclusive Bitcoin (BTC) Falls Short of New All-Time High Price

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In Brief
  • Bitcoin is trading close to resistance at $58,000.

  • There are bearish divergences in daily and lower time frames.

  • There are support levels at $53,600 and $52,200.

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The Bitcoin (BTC) price increased considerably on March 11, nearly reaching a new all-time high in the process.

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However, Bitcoin could undergo a short-term correction before eventually resuming its upward trend.

Bitcoin Potential Double Top

BTC continued its ascent yesterday, nearly reaching a new all-time high price. However, it was stopped short at $58,150, roughly $200 below the all-time high of $58,353. 

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Currently, it’s trading at $56,500 — slightly below the $58,000 resistance area. 

Despite the ongoing increase, it’s possible that BTC has reached a double top pattern. The double top is considered a bearish reversal pattern. This particular double top is also showing a bearish divergence in both the RSI and MACD

BTC Chart By TradingView

Bitcoin Shows Weakness

The six-hour chart is in alignment with the daily overview.

The RSI has generated a considerable bearish divergence for three successive higher highs on BTC. 

In addition, the MACD has generated one lower momentum bar. 

If BTC were to decrease, the closest support levels would be found at $53,600 and $52,200.

BTC Chart By TradingView

Similarly, the two-hour chart shows BTC trading inside a parallel ascending channel, which is likely to be a corrective movement. 

Currently, BTC is trading at the resistance area of this channel. 

The previously outlined $53,600 and $52,200 support areas coincide with the middle and support lines of the channel respectively.

Both the RSI and MACD have generated triple bearish divergences. This is a sign of a reversal, at least in the short-term.

BTC Chart By TradingView

Wave Count For Bitcoin

The wave count suggests that BTC is in sub-wave five (orange) of wave five (white). The entire bullish impulse began in March 2020.

The most likely target for the top of the movement is found between $64,034-$66,548. The targets are found by using a combination of external Fib retracements and projections.

A decrease below $46,294 would invalidate this particular count and indicate that the correction has begun.

For the shorter-term count, click here. 

BTC Chart By TradingView

Conclusion

Despite the long-term trend being bullish, BTC could undergo a short-term correction before resuming its upward trend. 

Afterward, a new all-time high price is expected.

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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