Bitcoin (BTC) has struggled to move above the $19,400 area since briefly deviating above it on Dec. 1.
At the time of press, Bitcoin was making another attempt at moving above the level after breaking out from a short-term pattern.
Bitcoin Deviates Above Resistance
The BTC price has been facing resistance from $19,400 since it was rejected by the level on Nov. 24, causing a sharp drop.
Since reaching a local low on Nov. 26, BTC has been increasing and has deviated above this $19,400 resistance area on Dec. 1 However, BTC is also following an ascending support line, which combined with the resistance area creates an ascending triangle of sorts.
The MACD and RSI are bullish and support the possibility of an upward move and an eventual breakout, which could take the price to a new all-time high.
The two-hour chart shows that BTC is in the process of breaking out from a symmetrical triangle. A breakout that travels the entire height of the pattern would take the price all the way to $20,500.
The RSI has finally moved above 50 and the MACD is increasing while being above 0, also supporting the possibility of a breakout.
Future BTC Movement
The wave count since the drop on Nov. 26 suggests that this is the fifth sub-wave (shown in red below) of the fifth wave (black).
The most likely target for the top of the move is found between $21,733-$21,949. This level is found by using the 4.61 Fib extension of sub-wave 1 and projecting the length of sub-waves 1-3 to the bottom of sub-wave 4.
If Bitcoin is able to break out from the triangle that it’s currently trading in, the price is expected to continue increasing and move above $20,000.
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