Bitcoin (BTC) reached a new all-time high price of $52,618 on Feb. 18 before decreasing slightly.
Bitcoin is expected to regain its footing and continue its ascent towards $55,000.
SponsoredBitcoin Breaks Out Yet Again
On Feb. 17, BTC created a bullish belt hold candlestick, reaching a new all-time high price of $52,618. The movement was important since it signaled a confirmed breakout above the $50,000 area. BTC had been struggling to move above this resistance in the past five days.
Furthermore, BTC invalidated a potential bearish divergence in the daily RSI, so technical indicators are entirely bullish now.
The two-hour time-frame shows that despite its lack of structure, BTC is possibly retracing to validate the ascending resistance line it has broken out from. The line also nearly coincides with the $50,700 minor support area.
While the RSI has decreased below 70, it’s still above 50 and there is a potential hidden bullish divergence at play.
Therefore, the most likely scenario would be a bounce at the previous resistance line or the minor support area. After this, the price would likely resume moving upwards.
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Wave Count
The wave count suggests that BTC is approaching the top of wave three (orange), of a bullish impulse that began on Jan. 27, 2021
The wave has a top target between $55,100-$55,900.
SponsoredThe sub-wave count is shown in black.
A decrease below the wave one high at $38,640 would invalidate this particular wave count. For the longer-term wave count, click here.
A closer look at the 30-minute time-frame suggests that BTC is indeed in the final portion of the move before a correction begins.
A decrease below the minor sub-wave 1 high (red) at $49,938 would invalidate this short-term count.
SponsoredNevertheless, it’s possible that BTC follows a slightly different path towards $55,000.
Conclusion
While Bitcoin is likely nearing the top of the current upward move, a high of $55,000 is likely before it starts to correct.
For BeInCrypto’s previous Bitcoin (BTC) analysis, click here
