Bitcoin (BTC) reached a high above $48,000 on March 28 and is now approaching an important resistance level near $51,000.
Bitcoin has been rising since January 24 and has so far hit a high of $48,189 on March 28. It is possible that the entire movement was contained in an ascending parallel channel.
However, due to the numerous long wicks, the exact slope of the channel is undetermined.
If the upward move continues, the nearest resistance zone would be found around $51,000. This is the 0.5 Fib Retracement resistance level and a long-term horizontal resistance zone. Moreover, it coincides with the resistance line of the channel.
Technical indicators in the daily time frame are bullish. Both the MACD and RSI are increasing. The MACD is currently positive and the RSI has moved above 70, both of which are common signs of a bullish trend.
Short term BTC breakout
The six-hour chart shows that BTC broke out of a descending resistance line that had previously been in place since February 10. He did it after three attempts and has already validated the line as support (green icon).
Neither the MACD nor RSI are showing any signs of weakness, meaning that it’s possible that the upward trend will continue without any considerable retracement.
Wave count analysis
The most likely wave number suggests that BTC has started wave C of an ABC structure (black). The start of the wave took place on March 14 and was validated on March 23 with the breakout of the symmetrical triangle.
The sub-wave count is shown in white and suggests that BTC is now in sub-wave three or four.
If BTC hits a high near $50,700, it would give waves A and C a 1:1 ratio. resistance between $50,700 and $51,000.
