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Bitcoin Short-Term Breakout Has It Aiming for $20,000 Again

2 mins
Updated by Kyle Baird
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In Brief

  • Bitcoin is facing resistance at $19,400.
  • The price is following an ascending support line.
  • BTC has broken out from a short-term symmetrical triangle.
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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.

BTC Deviation
BTC Chart By TradingView

Short-Term Breakout

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.

BTC Symmetrical Triangle
BTC Chart By TradingView

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.

BTC Wave Count
BTC Chart By TradingView

Conclusion

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.

For BeInCrypto’s previous Bitcoin 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

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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 ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona 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. (I do not have a discord and will not contact you first there. Beware of scammers)
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