Bitcoin Readies for Another Attempt at Making New Highs

Share Article
In Brief
  • Bitcoin is facing resistance at $23,950.

  • Daily and short-term technical indicators are bullish.

  • BTC is possibly in a fourth wave triangle.

  • promo

    Stake your points and qualify for the 200,000 USDT prize pool. Start staking now!

The Trust Project is an international consortium of news organizations building standards of transparency.

Bitcoin (BTC) has been consolidating just below its all-time high price over the past week.

Sponsored



Sponsored

Bitcoin is expected to break out from the current resistance and reach a new all-time high in the process.

 

Possible Bitcoin Breakout

On Dec. 25, the BTC price continued its consolidation just below the $23,950 resistance area, creating a bullish candlestick.

Sponsored



Sponsored

While the RSI previously generated a bearish divergence (red line), it proceeded to invalidate it by generating a hidden bullish divergence after (blue line).

The Stochastic oscillator has made a bullish cross, While the MACD is in the process of generating a lower momentum bar, it has not been confirmed yet.

Therefore, technical indicators suggest that BTC is likely to break out.

BTC Chart By TradingView

The two-hour chart also supports this possibility. While BTC is very close to resistance, both the MACD and RSI support the continuation of the upward movement and the possible breakout.

BTC Chart By TradingView

Wave Count

The wave count suggests that BTC is approaching the top of wave 5 (shown in blue below), and is currently in its fifth sub-wave (orange).

The most likely target for the top of the move is found between $25,552-$26,438. The target is found by three different Fib extensions and projections:

  • Projection of the length of waves 1-3 to 4 (blue) – $25,552
  • 2.61 Fib extension of sub-wave 1 (orange) – $25,946
  • Projection of sub-wave 1 to 4 (black) – $26,348

Therefore, BTC is expected to reach a high inside this area.

BTC Chart By TradingView

Lower time-frames show that BTC is trading inside a sub-wave 4 triangle (shown in black). A decrease below $22,624 would invalidate this scenario.

BTC Chart By TradingView

Conclusion

Bitcoin is expected to break out from its symmetrical triangle and proceed to reach a high near $26,000. A decrease below $22,624 would invalidate this scenario.

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.

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.
Sponsored
Share Article

Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

Follow Author

Limited offer! Learn to mine and trade crypto today for free

Join

Earn up to $10,000 USD every week in CoinFLEX AMM+ Arena!

Earn Now

Be our Supreme Scorer and qualify for a grand prize pool of 200,000 USDT!

Join