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How Long Will Bitcoin’s Rapid Ascent Continue?

2 mins
Updated by Adam James
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In Brief

  • The Bitcoin price has moved above its 200-day moving average (MA).
  • There is minor resistance at $9400 and major at $10,600.
  • BTC is possibly trading inside a long-term symmetrical triangle.
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On April 29, Bitcoin (BTC) created a massive bullish engulfing candlestick — which, at its close, had a body of slightly more than $1000. This caused the price to break out above several resistance levels.

Bitcoin’s Breakout

On April 29, the bullish engulfing candlestick caused the Bitcoin price to move above the 200-day moving average (MA). While this is a bullish development, suggesting that the price has moved above a major resistance level, it is worth noting that it has occurred thrice in the past year (and the price has fallen back inside it afterward each time). However, the breakout occurred with very significant volume, which was not the case in the previous breakouts — increasing the validity of the movement. There are two resistance areas above the current price, one minor and the other major. The minor resistance level is found at $9400 while the major one at $10,600. The price has not traded above the latter since September 2019.
Bitcoin Moving Average
Bitcoin Chart By Trading View

Long-Term Symmetrical Triangle

Looking at the weekly chart, we can see that the BTC price has been trading inside a massive symmetrical triangle since reaching an all-time high in December 2018. At the time of writing, the price was trading right at the resistance line of this pattern. In addition, the $9500-$10,000 area is also a higher time-frame resistance, having acted as a top for numerous previous rallies. If the price fails to break out above this resistance line, it is likely to drop and validate the ascending support line along with the 200-week MA, which is currently at $6000. Bitcoin Symmetrical Triangle As for the wave count, the bullish scenario is shown in red in the image below. It suggests that, beginning in December 2017, the Bitcoin price has completed an A-B-C correction at the bottom in December of the following year. In this case, the price has already begun a new five wave Elliott formation and is currently in the (III) wave. The bearish option is shown in blue. It suggests that the price is still mired in a correction, albeit an A-B-C-D-E one, which is very common in symmetrical triangles. If this one is followed, the price will reach a high at the resistance line and drop towards support before eventually breaking out. Either way, it looks likely that the March 13 bottom values will not be reached in the near future, if at all. Bitcoin Wave Count

Conclusion

To conclude, the Bitcoin price has been increasing rapidly over the past 30 hours, causing it to reach a crucial resistance level. If the price breaks out, it could continue its rapid ascent towards $13,000. If not, we could see a sharp drop to $6000. For those interested in BeInCrypto’s previous Bitcoin analysis, click here.
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Disclaimer

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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