Bitcoin (BTC) regained all of its losses from Dec. 27 and is currently making more attempts at reaching new highs.
Bitcoin is expected to be successful in reaching a high between $29,800 and $30,730.
Bitcoin Shooting Star Resistance Dissipates
Yesterday, BTC continued its ascent, creating a long lower wick and reaching a positive close. Today it briefly reached a high of $28,580 above the shooting star wick.
Technical indicators are still bullish and show no clear signs of weakness.
The two-hour chart is also bullish.
First, it shows that BTC has already broken out from a descending resistance line, which was the catalyst for the most recent upward movement.
Furthermore, BTC moved above the $27,800 resistance area after and validated it as support (shown with the green arrow below).
Similar to the daily time-frame, technical indicators are also bullish, supporting the possibility that BTC resumes its upward movement.
BTC Wave Count
The wave count suggests that BTC is in sub-wave 5 (shown in black below) of wave 5 (orange).
A possible target for the formation to end would be at $29,800 (3.61 Fib extension of wave 1). The next resistance past that would likely be seen at $33,600.
A closer look shows that BTC could be nearing the top of its move. The minor sub-wave count shown in blue.
A similar target of $29,357 is found using the 4.61 Fib extension of sub-wave 1.
The invalidation for this bullish count would be found at $25,831, below the minor sub-wave 2 (shown with the red line).
A significant correction would be expected after the move is complete, as outlined in our article from Monday.
Bitcoin is expected to resume its upward movement and reach a high between $29,350-$29,800 before decreasing.
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