Bitcoin awaits breakout as bulls test $60k high again
|-
Bitcoin (BTC/USD) uptrend is slowing down with corrective price action in the past few weeks. But another bullish bounce this week is challenging the previous top.
-
BTC/USD price patterns indicate that the uptrend is still active and far from completed. The choppy price action, however, does point to a wave 4 pattern.
-
A bullish bounce at the support zone would solidify the uptrend. The main bullish targets are the -27.2% and -61.8% Fibonacci levels at $65k and $70k for the moment.
Will price action finally break the $60,000 resistance and continue for a new higher high?
Price charts and technical analysis
The BTC/USD price patterns indicate that the uptrend is still active and far from completed. The choppy price action, however, does point to a wave 4 pattern. Let’s review the key decision zones:
-
The resistance at the previous top is critical. A bullish breakout (green arrows) could confirm the immediate uptrend continuation.
-
A bull flag pattern after that breakout is also key. A retest of the broken resistance and $60k level could take place via a flag pattern. A bullish bounce at the support zone would solidify the uptrend.
-
The main bullish targets are the -27.2% and -61.8% Fibonacci levels at $65k and $70k for the moment.
-
If price action breaks down or if price action shows a false bullish breakout with a weak daily candlestick, then a deeper retracement could take place. A break below the 21 ema (orange arrow) could indicate a retest of the previous bottom (blue box). A bounce is expected at the support (blue arrow).
On the 1 hour chart, price action seems to have completed a wave C (green) within wave 4 (blue) at the most recent lowest low:
-
The quick impulsive bullish price swing is probably a wave 3.
-
The corrective and choppy correction is usual for a wave 4.
-
The wave 4 retracement respected the usual 38.2% Fibonacci level.
-
A bullish breakout or bounce (green arrows) could indicate a bullish move.
-
A break below the support line (green) means a retracement. The 38.2% Fib could hold and create a double bottom.
-
A break below the 50% Fib indicates a deeper retracement.
The analysis has been done with the ecs.SWAT method and ebook.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.