Bitcoin Continues Clawing Its Way Toward $40,000

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In Brief
  • BTC reached a new all-time high on Jan. 7

  • There is support at $34,500.

  • BTC is likely in the final sub-wave of the upward trend.

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Bitcoin (BTC) continued its ascent on Jan. 6 and 7, this time reaching yet another all-time high at $37,800.



Despite a lack of weakness from technical indicators, the wave count suggests that Bitcoin is nearing the top of its move, with a possible target near $39,100.

 

Bitcoin Reaches Another All-Time High

BTC created yet another bullish candlestick on Jan. 6, reaching the highest daily close ever at $36,849. It continued its ascent the next day, to hit a high of $37,800.



Despite being overbought, technical indicators do not yet show any weakness.

BTC Chart By TradingView

Future Movement

The six-hour chart shows the first signs of weakness in the form of a bearish divergence in both the RSI and MACD. However, the divergence is only visible in time-frames of six hours and lower.

Furthermore, there is a support area found at $34,500, which BTC has validated. As long as it is trading above this area, BTC is expected to continue moving upwards.

BTC Chart By TradingView

BTC Wave Count

The wave count suggests that BTC is likely nearing the top of its upward movement. It’s possibly in sub-wave 5 of a longer-term wave 5, as outlined in yesterday’s article.

A likely target for the top of sub-wave 5 (shown in orange below) is located between $39,130-$39,170. The target is found by projecting the length of sub-waves 1-3 (black fib) and an external retracement on sub-wave 4.

BTC Chart By TradingView

An even closer look at the movement shows that BTC is likely in minor sub-wave 5 (shown in black below) of sub-wave 5.

Therefore, a decrease below the minor sub-wave 4 low at $34,330 (red line) would likely mean that the upward movement is over and BTC is correcting.

BTC Chart By TradingView

Conclusion

While Bitcoin is expected to continue increasing, the $39,100 area could possibly act as the top of the upward movement.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here!

Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.

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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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