Bitcoin (BTC) Price on the Fence – This Resistance Level Holds Key for the Future Trend

11 months ago 2

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The Bitcoin (BTC) price has endured a roller-coaster week that began with a sharp decrease but has been followed by a bounce.

It remains to be seen if BTC will close its ninth successive bullish candlestick or if the positive trend will break.

Can Bitcoin Close Above Long-Term Resistance?

The technical analysis from the weekly time frame shows that the BTC price has increased swiftly since October. During the increase, the price created eight successive bullish weekly candlesticks. This led to a new yearly high of $44,700 last week.

The Bitcoin price high was made above a pivotal Fibonacci and horizontal resistance level.

While Bitcoin started to fall this week, it has regained its footing and nearly negated all of its losses. So, it remains to be seen if this week’s candlestick will be bullish or bearish (red icon).

Market traders use the Relative Strength Index (RSI) as a momentum indicator to identify overbought or oversold conditions and to decide whether to accumulate or sell an asset.

Readings above 50 and an upward trend indicate that bulls still have an advantage. Readings below 50 suggest the opposite. The RSI is increasing and above 50 but has also reached overbought territory.

What Are the Analysts Saying?

Cryptocurrency traders and analysts on X are bullish on the short-term BTC trend.

ShardiB is bullish because of a short-term triple-bottom pattern leading to the current upward movement.

TheScalpingPro presented two scenarios for the future price:

There are two possible scenarios :

Price continues to go higher and shoots up till $48,000 before experiencing a deeper retracement back to the range low. (Fakeout above mid range + Retest of fib 0.618)

Price has topped out locally at the mid-range and will start heading lower from here till $35,000 before the next leg up. (Consolidates here with multiple retest before a correct till $35k monthly support) Whatever scenario plays out, the overall idea is bullish, any dips are opportunities for buying

Finally, MooreCryptoNL is bullish because of the wave count, which suggests another increase toward a new yearly high is likely.

BTC Price Prediction: What’s the Direction of the Next Move?

Technical analysts utilize the Elliott Wave theory to identify repetitive long-term price patterns and gain insights into investor psychology, assisting in determining trend directions.

According to the most likely Elliott Wave count, Bitcoin’s price is approaching the peak of wave three within a five-wave upward movement (white). Notably, wave three has extended, with sub-waves detailed in black.

As a result of this count, the expected target for the top of wave three is $47,600, indicating an 11% increase from the current price. The target is calculated by combining the length of sub-waves one and three.

Subsequently, Bitcoin’s price may initiate the corrective wave four. The bearish divergence (highlighted in green) in the RSI suggests that the upward movement is approaching its end.

Despite the bullish Bitcoin price prediction, a close below the breakout level (red line) at $38,000 would signify the commencement of wave four. In such a scenario, the BTC price could decline by 22% to reach the nearest support at $33,000.