Bitcoin (BTC) has moved above its September highs and is approaching the final resistance area prior to its all-time high. BTC could potentially get rejected in the short term prior to reaching a new all-time high. However, all signs point to a high being reached soon.
Bitcoin increased significantly on Oct 6, posting its highest increase since the upward move began on July 21.
It’s rapidly approaching the closest resistance area at $57,200. This s a horizontal and Fib resistance level, meaning that it’s a very strong resistance area due to the confluence. A movement above would pave the road to the $64,640 all-time high price.
Both the RSI and MACD are bullish and increasing. The increase is especially important in the RSI since it caused a move above 50 (green icon). The previous time this transpired was on July 21, directly preceding the current rally.
Also, the MACD is positive and increasing, which means that the short-term trend is increasing at a faster rate than the long-term trend
So, technical indicators in the daily time frame are clearly bullish.
The wave count also supports the continuation of the upward movement. Since BTC broke out from an ascending parallel channel, it showed that the rally is part of a bullish impulse. This means that the trend is bullish, and the previous decrease was only a correction.
The most likely count indicates that the breakout was part of wave three of a five-wave upward move. The reason for this is that wave three is most often the sharpest and longest out of the five waves.
Therefore, BTC is currently in wave four. There are two main possibilities for its movement.
The first is a sideways pattern, in which BTC consolidates in a channel or triangle before eventually breaking out. Currently, this seems like the most likely outlook.
The second possibility is that BTC will complete a fourth wave pullback before moving upwards. This means that a sharp drop will complete wave four prior to the continuation of the upward move.
If this occurs, the resistance line of the previous channel at $48,000 would be a likely level for the correction to end.
The long-term wave count provides a very bullish outlook, indicating that BTC will soon reach a new all-time high.
Most likely, BTC is in a 1-2/1-2 wave formation. In this case, it’s now only in the first part of the upward move (orange) that will accelerate considerably.
The potential decrease in sub-wave two (orange) would allow altcoins to outperform BTC. Once BTC moves closer toward making a new all-time high, altcoins are likely to lag behind.
For BeInCrypto’s previous Bitcoin (BTC) analysis, click here.
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