What to expect next after BTC/USD break above $50k
|Bitcoin (BTC/USD) has managed to break above the psychologically round leve of $50k. Can the cryptocurrency challenge the previous high again?
Let’s review the long-term charts to analyse the remainder of the year 2021. Will the 2021 bull run outpace the 2017 bull run?
Price charts and technical analysis
The BTC/USD is showing a strong bullish recovery after a deep bearish pullback:
-
Price action has managed to break above the 21 ema zone again.
-
The bullish momentum is expected to challenge the previous top (blue arrow).
-
The previous top is a strong resistance zone and could stop the uptrend.
-
A bearish retracement (orange arrows) could complete an ABC (blue) in wave 4 (pink).
-
A bullish bounce (green arrow) could take place at the support zone (green box).
-
A bull flag pattern (grey arrows) however indicates that the immediate uptrend remains valid. In that case, a wave 4’ finished at the recent low.
On the daily chart, we see that the bullish momentum is strong because price action remains above the 21 ema zone for a long time:
-
The bullish price swing is either a wave C or 3 (orange).
-
This depends on the price reaction at the resistance zone (red box).
-
A bearish reversal (red arrow) indicates a wave C and more bearish correction.
-
A flag pattern (grey arrows) indicates a wave 3 continuation.
The analysis has been done with the indicators and template from the SWAT method simple wave analysis and trading. For more daily technical and wave analysis and updates, sign-up to our newsletter
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.