Bitcoin (BTC) is rapidly approaching its final resistance area and is currently less than $2,000 below the all-time high price. While technical readings are still bearish, the number of waves indicates that BTC is approaching the peak of its bullish movement.
The daily chart provides a bullish outlook for BTC, which has broken out above the $57,200 resistance. This is the last resistance area before a new all-time high and is also the 0.786 Fib retracement resistance level.
Therefore, there is no more resistance until the all-time high of $64,854, which was reached in April 2021.
Technical indicators also paint a bullish picture.
The MACD, which is created by short and long-term moving averages is moving upwards and is positive. This means that the short term trend is moving faster than the long term trend and is a positive sign during bullish moves.
The RSI, which is a momentum indicator, has moved above 70. This shows that momentum is clearly bullish, although the trend is overbought.
Therefore, the daily chart paints a bullish picture.
Short-term movement
The two hour chart shows that BTC broke out of a parallel channel and rebounded from its resistance line after (green icon).
This suggests that the line is now expected to act as support.
Technical indicators also support the continuation of the trend. The RSI is above 50, a sign of a short-term bullish trend.
More importantly, the MACD generated a hidden bullish divergence. This is a strong sign of trend continuation.
Therefore, the readings for the two hour period indicate that the upward movement is likely to continue in the near term.
Bitcoin wave count
The short-term wave count indicates that BTC is in the fifth wave of a bullish impulse. This is the last wave, after which a correction would be likely. The long-term wave count is bullish, but also presents the possibility of an initial correction prior to the resumption of the upward movement.
BTC appears to be very close to the peak of its rally when using the Fib tools to determine the duration of the rise.
A likely area for a top measure between $63,250 and $63,850. The area is found by projecting the length 1.61 of wave 1 (white) and the length 0.618 of waves 1-3 (black).
Therefore, unless the wave extends further, BTC is likely to reach a top soon.
