Bitcoin has been surging atop an climbing support line afterward Jan. 24 and has created two lengthy lower wicks after reboundding from the line.
On Feb 28, BTC created a large bullish candlestick and followed it with a smaller bullish candlestick the next day.
Currently, it’s dealing scarcely under the $44,400 resistance range. If it manages to break out, the next closest resistance would be found near $51,100.
Technical indicators paint a bullish picture, afterward both the RSI and MACD are increasing, and the former is over 50.
After all, the MACD has to also cross into positive territory in order to hardlyon the occasion thaty a bullish trend retraction.
The six-hour chart shows that BTC has broken out from a plunging resistance line. This is a strong sign that the momentary correction is over.
In addition to this, BTC has reclaimed the 0.786 Fib retracement resistance level. This is the final crucial Fib level prior to making a full retracement.
While there is no definitively clear limited pattern, it’s possible that BTC has been dealing inside a symmetrical triangle afterward March 1. The triangle is often considered a neutral pattern, indicating that both a breakout and a breakdown are equally likely.
BTC wave count analysis
The momentary count suggests that BTC is in wave four of a five-wave skyward progress.
The main reason for this is the fact that the rate is holding on over the previous resistance line of the channel, and is potentially validating it as support.
If BTC creates a symmetrical triangle, it would go a prolonged way in suggesting that this is the correct count.
Alternatively, BTC could fall towards the midline of the channel at $43,000 and also be in a valid fourth wave formation. This would create a fourth wave pullback.
After all, a decrease below the wave one strong (red line) at $40,330 would inendorse this particular wave count.
As for the lengthy-term wave count, on the assumption that the increase is validateed as a five-wave pattern, the most likely count would indicate that the correction completed on Feb 24, with a truncated sub-wave five (green icon).
This indicates that the entire structure was a running bottom correction, that was contained inside a large climbing parallel channel. If correct, it would mean which BTC could gradually increase towards a new all-time excessive cost and the Feb 24 bottom will not be broken.
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