Bitcoin Awaits Breakout As Bulls Test $60k High Again

The 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.

Will price action finally break the $60,000 resistance and continue for a new higher high?

Price Charts and Technical Analysis

(Click on image to enlarge)

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.

(Click on image to enlarge)

 

Disclaimer: The opinions in this article are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit ...

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