The Bitcoin (BTC) price bounced significantly on Jan. 28, creating a bullish engulfing candlestick and reaching a high of $33,783.
Bitcoin is expected to resume its upward movement until it reaches the neighborhood of $35,130.
Bitcoin Runs Into Resistance
Bitcoin initiated a considerable upward movement on Jan. 28, creating a bullish candlestick that completely engulfed the prior bearish candle. This also completed a double bottom pattern relative to the lows on Jan. 22.
However, BTC was rejected by the $33,800 resistance area (0.382 Fib retracement level). If a breakout were to occur, the next resistance area would be found at $39,960.
Daily indicators are firmly bearish, casting some doubt on the possibility of a breakout.
The six-hour chart shows the completed double bottom pattern, which was combined with a significant bullish divergence in the RSI and MACD.
BTC Wave Count
The wave count suggests that BTC is now in the C wave (shown in orange below) of an A-B-C flat corrective structure.
The upward movement which completes this wave is expected to end at either:
- $35,390 – Giving the A:C waves a 1:1 ratio
- $39,131 – Giving the A:C waves a 1:1.61 ratio
The former target also fits with the resistance line of an ascending parallel channel, so it might be slightly more likely to be reached.
The sub-wave count (black) suggests that BTC has completed the first three waves of a bullish impulse which creates the C wave.
Once BTC decreases below the sub-wave 1 high at $31,928, the upward move will likely have ended.
After the C wave is completed, another downward move would be expected.
Conclusion
Bitcoin is expected to resume climbing until it reaches resistance at $35,390 and possibly $39,130, before beginning yet another downward move.
For BeInCrypto’s previous Bitcoin (BTC) analysis click here
Trusted
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
