Bitcoin (BTC) has increased considerably so far on Oct 15, nearly moving above $60,000, reaching its highest price since April. While it is getting close to a new all-time high, BTC also seems to be approaching the top of its upward movement.
On Oct 14, bitcoin finally closed above the $57,200 horizontal resistance area. The next day, it initiated a significant upward move. This was a crucial development since the area is the final resistance level prior to making a new all-time high price. In addition to this, it’s the 0.786 Fib retracement resistance level.
In the near future, the same area is now likely to act as support. The next resistance is found at the all-time highs near $64,000.
Technical indicators in the daily time frame are bullish.
The MACD, which is created by short and long-term moving averages (MA), is positive and increasing. This shows that the short-term trend is faster than the long-term one.
Secondly, the RSI is moving upwards and is above 70. This shows that while the trend is overbought, it’s still bullish and increasing.
Therefore, technical indicators in the daily time frame support the continuation of the upward movement.
The six-hour chart shows that BTC has broken out from an ascending parallel channel.
Since channels usually contain corrective structures, the breakout above the channel suggests that the upward move is impulsive, adding to the strength of the bullish trend. This also fits with the readings from the daily time frame.
The breakout transpired shortly after the RSI generated a hidden bullish divergence (blue line), which is a strong indicator of trend continuation.
Bitcoin wave count
The short-term count shows that BTC is in the fifth and final wave of its bullish impulse, which began on Sept 21. Therefore, after the current move is complete, a correction would be expected.
BTC has already reached the first target area for the top of the upward impulse. The area is between $59,700-$60,000, created by the length of wave one (white) and that of waves 1-3 (orange).
If it extends, it would be expected to reach the next confluence of resistances between $63,250-$63,850.
In any case, it seems that BTC is approaching a top.
The long-term wave count shows a 1-2/1-2 wave formation indicating that after the correction is complete, a sharp upward rally could follow.
For BeInCrypto’s previous Bitcoin (BTC) analysis, click here.
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