October 7th Bitcoin technical analysis

Bitcoin (BTC) is in a strong bull run with the bulls completely in control of the market. While a short-term decline is possible, BTC is expected to gradually move towards new highs.

Day outlook

Bitcoin rebounded significantly on October 6, creating a large bullish candlestick with an intensity greater than $ 5,000. This took it above the September high of $ 52,920 and hit a local high of $ 55,750. BTC is currently nearing the USD 57,200 resistance area.

Technical indicators are bullish as both RSI and MACD show bullish results.

The RSI is rising after breaking above 50 (green circle) on October 1st. The last time this was on July 21st, which resulted in a 47 day upward move.

The MACD line is rising and is in positive territory. In addition, his histogram has also produced higher momentum bars, which shows that bullish momentum is strengthening.

As a result, BTC’s daily time frame offers a solid bullish outlook.

BTC / USDT daily chart | Source: TradingView

Future movement

The 2-hour chart also offers a bullish outlook. BTC broke out over an ascending parallel channel and then confirmed it as support (green symbol).

Since channels often contain corrective moves, a breakout across the channel invalidated this theory and showed that it was part of an uptrend rather than just a rally.

BTC / USDT 2-hour chart | Source: TradingView

Count waves

Since the breakout above the channel suggests that the current move is impulsive, the number of waves suggests that the current rise is part of the third wave (black). Wave three may have lengthened. So far it has been 2.61 times longer than wave one.

Therefore, there may soon be a sharp decline that completes a pullback with wave 4.

When that happens, the $ 48,000 zone can serve as a stepping stone for the next rally.

This level is:

• Horizontal support zone
• Resistance line of the parallel channel
• Lower auxiliary shaft 4 (red)

BTC / USDT 2-hour chart | Source: TradingView

The long-term wavenumber is also showing an upward trend, suggesting that BTC will move to a new all-time high.

The most likely possibility is that BTC is forming wave 1-2 / 1-2. This means that it is currently in the first (orange) part of its climb and will eventually have an even stronger uptrend leading to all-time highs in the process.

BTC / USDT 12-hour chart | Source: TradingView

You can see the Bitcoin price here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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