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.
Bitcoin 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.
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.
The 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.
Nevertheless, it’s possible that BTC follows a slightly different path towards $55,000.
While Bitcoin is likely nearing the top of the current upward move, a high of $55,000 is likely before it starts to correct.