The Bitcoin (BTC) price has been gradually decreasing since Feb. 17 after reaching an all-time high of $52,640.
Despite the decrease, Bitcoin has validated the resistance line from which it previously broke out from. It’s expected to resume its upward trend in the near future.
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Bitcoin Returns to Validate Resistance
On Feb. 17, BTC broke out from an ascending resistance line that had previously been in place since Feb. 8.
After reaching a high of $52,640, BTC returned and validated the prior ascending resistance line (green arrow). This level is now likely to act as support. The re-test also coincides with an RSI bounce at 50 — a sign that the BTC is ready to move higher.
A MACD histogram cross into positive territory would confirm that the short-term trend is bullish.
BTC Wave Count
The wave count suggests that BTC has nearly reached the top of wave three (orange). The wave is a part of a bullish impulse that began on Jan. 27, 2021.
The most likely target for the top of this move is found between $55,100-$55,900. After making it past this range, the next likely target would be found between $60,600-$62,000.
SponsoredThe sub-wave count is shown in black and indicates that BTC is in sub-wave five.
The longer-term count (white) shows that BTC is also nearing the top of a long-term wave five that began in March 2020.
The most likely target for the top of the move is found between $63,800-$66,550.
This target makes it more likely that the move in the previous section will end near $56,000. A final upward move could potentially take BTC towards the $63,800-$66,550 range.
Conclusion
Bitcoin is likely to reach a high between $55,100-$55,900 before correcting. An extended upward move could take BTC toward $60,000 before a correction occurs.
For BeInCrypto’s previous Bitcoin (BTC) analysis, click here
