Exclusive Bitcoin (BTC) Stalls Prior to Reclaiming $60,000

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In Brief
  • Bitcoin has created a Doji candlestick.

  • Short-term indicators are showing weakness.

  • There is resistance at $59,700 and support levels at $56,200 and $55,100.

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Bitcoin has been increasing since March 25, but the rally stalled yesterday once BTC created a Doji candlestick.



While the long-term trend for bitcoin is still bullish, a short-term retracement is expected prior to the continuation of the upward movement.

Bitcoin Rally Stalls

While BTC has been increasing since March 25, the rally stalled yesterday. After reaching a high of $59,800 on March 31, BTC created a doji candlestick — a sign of indecision. This can be seen as a sign of weakness when transpiring in an upward trend.



The candlestick was created at a resistance area near $60,000. This the same place where three upper wicks had been previously created at the beginning of March.

BTC Chart By TradingView

Short-Term Weakness 

The six-hour chart shows the first signs of weakness. 

BTC has struggled to move above the $59,700 resistance area since it was rejected yesterday.

In addition, the RSI has generated a bearish divergence and the MACD has generated one lower momentum bar. Both of these suggest the rally is losing strength.

BTC Chart By TradingView

The two-hour chart further supports this, with an even more pronounced weakness in both the RSI and MACD. 

Therefore, a short-term retracement would be the most likely scenario. This means that bitcoin could decrease towards the 0.382 Fib retracement level at $56,200, before resuming its upward movement.

BTC Chart By TradingView

Wave Count For Bitcoin

The wave count still suggests that BTC is expected to reach a new all-time high. 

The most likely potential target for the top of the upcoming movement is found between $67,600 – $72,178. This target range is found using a combination of Fib projections and external Fib retracements. 

Afterward, BTC is expected to undergo a correction.

BTC Chart By TradingView

Conclusion

BTC is expected to eventually break out above the $59,700 area and reach a new all-time high. 

However, a short-term retracement is expected prior to the resumption of the upward movement.

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 is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo. In 2019, he decided to focus full-time on cryptocurrencies and trading.

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