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Bitcoin consolidates in anticipation of a bullish breakout

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IS VECHAIN (VET) ABOUT TO GO EVEN MORE PARABOLIC!? Cryptocurrency Trading & Analysis 2021

Bitcoin consolidates in anticipation of a bullish breakout

Bitcoin consolidates in anticipation of a bullish breakout
CONTENT

  • Bitcoin formed a double top inside the $ 15,800 resistance area.

  • The price is likely to be trading within an ascending triangle.

  • Bitcoin is likely inside the 5th wave of the 5th wave.

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Bitcoin rebounded from the $ 15,800 resistance area on Nov. 9 and declined. However, the price remains inside the bullish pattern, from which it can break out to the north.

Potential triangle

Bitcoin consolidates in anticipation of a bullish breakout

The bitcoin (BTC) rate is currently trading on the approaches to the resistance area of ​​$ 15,800. The price formed a double top on the chart inside the resistance area, and then decreased. The appearance of a double top was accompanied by signals of bearish divergence on the RSI.

However, on the decline, the pair quickly attracted buyers and formed two long lower wicks. This helped test the strength of the upward support line that has been on the chart since November 3. Since then, the price has risen, moving above this line..

If the BTC rate makes a bullish breakout from the triangle pattern and rises to the full height of this pattern, it could reach a maximum of $ 17,200.

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Schedule BTC. Source: TradingView

On the short-term chart, the price is trying to move above the 0.618 Fib level of the above decline and has potentially formed another short-term ascending triangle.

If Bitcoin goes above the 0.618 Fib level at $ 15,460, which is often an indication of reaching a top within a correction, then the growth rate should accelerate.

Technical indicators support this move. MACD rallies above 0 and RSI is also consolidating above 50.

Bitcoin consolidates in anticipation of a bullish breakout

Schedule BTC. Source: TradingView

Long-term dynamics

On the weekly chart for BTC, you can see that two important Fib levels pass above the current price level, which play the role of resistance. We determined them using a projection from the all-time high of 2017.

These levels are located at $ 16,100 and $ 17,200 (Fibo 0.786 and 0.854, respectively). The last level also coincides with the bullish breakout target of the triangle pattern, making this area a good candidate for a top..

In this regard, a potential triangle breakout could push the price up to these values. At the moment, we are not seeing any bearish signals that promise a reversal of Bitcoin.

Schedule BTC. Source: TradingView

Wave analysis

The results of our last wave analysis also indicate the likelihood of a bullish breakout and give similar target levels around $ 16,100- $ 17,200.

This goal was determined by us using the projection of the length of subwaves 1-3 to subwave 4 (blue and orange). In addition, the Fibo level 4.618 of the extension of the subwave 1 (blue) is located here..

Schedule BTC. Source: TradingView

Bitcoin consolidates in anticipation of a bullish breakout

Conclusion

Thus, the Bitcoin price is expected to eventually make a bullish breakout from its current pattern and head towards the local high of $ 17,200..

You can read the previous Bitcoin forecast here.

Disclaimer: Trading cryptocurrencies carries a high level of risk and is not suitable for all investors. The opinions expressed in this forecast do not reflect the opinions of the editorial staff of BeInCrypto.

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

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