Bitcoin Smashes Through $20,000 — What’s Next?

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In Brief
  • BTC has broken out from the $19,450 area.

  • Technical indicators are bullish in all time-frames.

  • BTC is likely in wave five of a bullish impulse.

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The Bitcoin (BTC) price has broken out above the previous resistance area at $19,450 and proceeded to reach a new all-time high.

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This is likely the fifth wave in a bullish impulse which is expected to take Bitcoin to higher targets.

 

Bitcoin Breakout Leads To All-Time High

Yesterday, the BTC price broke out and has now moved considerably above the $19,450 resistance area. It is currently making new all-time highs, briefly reaching $23,745 before getting knocked back.

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Technical indicators are bullish despite the rally being overbought. This suggests that BTC is likely to continue moving higher.

BTC Chart By TradingView

The two-hour chart shows that BTC is following an ascending support line that was validated right before the upward move accelerated yesterday.

The line currently coincides with the 0.5-0.618 Fib retracement of the upward move, so a drop to validate the line would make sense for a healthy correction.

However, technical indicators do not yet show any weakness, indicating that BTC could continue moving upwards.

BTC Chart By TradingView

BTC Wave Count

In BeInCrypto’s wave count article from Tuesday, we stated that:

“Bitcoin is expected to resume its upward movement and eventually reach a high between $25,500-$26,300, which is the most likely region for the fifth wave (blue) to end.”

While the target wave count has been slightly altered, BTC still appears to be in wave five (shown in blue below).

BTC Chart By TradingView

The shorter-term count has more ambiguity to it. BTC seems to be in sub-wave 3 (shown in orange below) of a five sub-wave formation.

The two likeliest targets for sub-wave 3 to end are $23,629 or $25,819. BTC is expected to drop slightly after this, possibly to validate the channel it has broken out from and move upwards one final time in order to complete wave 5.

A decrease below the wave 1 high at $19,918 would invalidate this particular wave count.

BTC Chart By TradingView

The two-hour chart shows the minor sub-wave count (shown in black below) for sub-wave 3, which suggests BTC has another upward move before it completes sub-wave 3.

BTC Chart By TradingView

Conclusion

The Bitcoin price is expected to continue increasing at least until it reaches the range near $26,000.

For BeInCrypto’s previous 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.
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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.

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