Exclusive Bitcoin (BTC) Stops Bleeding with Bounce from Support

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In Brief
  • Bitcoin has broken out from a descending wedge.

  • There is minor support at $47,700 and major support at $44,600

  • There is resistance between $50,650-$52,450.

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On Mar. 1, Bitcoin (BTC) bounced at the minor $44,600 support area, nearly reaching a high of $50,000 after.



It’s possible that this is the beginning of an upward move that will carry Bitcoin above the current resistance range of $50,650-$52,450.

 

Bitcoin Bounces at Support

On Mar. 1, Bitcoin bounced at the minor $44,600 support area and created a bullish engulfing candlestick, reaching a high of $49,790. The bounce also coincided with a daily RSI bounce at the 50-line.



While this is a strong bullish sign, technical indicators have yet to confirm the bullish trend reversal. 

The MACD is still decreasing and has failed to generate a higher momentum bar. The Stochastic oscillator has made a bearish cross.

The next support area is found at $38,600.

BTC Chart By TradingView

Wedge Breakout

The six-hour chart shows that BTC has broken out from a descending wedge and is currently approaching the 0.5-0.618 Fib retracement resistance area at $50,650-$52,450. 

Technical indicators have turned bullish. The MACD has given a bullish reversal signal and the RSI has crossed above 50.

BTC Chart By TradingView

While the two-hour chart shows some weakness in the form of a bearish divergence, it is relatively small. The bearish divergence is insignificant relative to the bullishness from the price action and higher time-frames. 

Therefore, while BTC could drop to the minor $47,700 area and validate it as support, it would be expected to move higher after.

BTC Chart By TradingView

Wave Count

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

The top of the movement has a target of $63,900-$66,550, found by a combination of Fib projections and external Fib retracements

BTC Chart By TradingView

A closer look at the movement shows that the increase looks impulsive. This makes it likely that it’s the beginning of the aforementioned upward movement. 

Therefore, while a short-term drop could occur, BTC would be expected to continue moving higher after.

BTC Chart By TradingView 

Conclusion

While a short-term drop could potentially transpire, Bitcoin is expected to continue increasing towards the $50,650-$52,450 range before eventually breaking out.

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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