Bitcoin (BTC) has broken its September high and is approaching the final resistance area before hitting an all-time high.
BTC could be rejected in the short term before it hits a new all-time high. However, all signs point to a new high soon.
Bitcoin rebounded significantly on October 6th, marking the highest gain since the upward movement began on July 21st.
It is quickly approaching the next resistance area at $ 57,200. This is a very strong area of resistance due to the confluence between horizontal and fib resistance. Moving above this level paves the way for an all-time high of $ 64,640.
In addition, both RSI and MACD are increasing. The rise is particularly important in the RSI as it has moved above 50 (green symbol). When this took place on July 21, a 47-day rally followed.
BTC / USDT daily chart | Source: TradingView
The wave count also assists the continuation of the upward movement. Since BTC has broken out through an ascending parallel channel, it shows that the rally is part of a bullish impulse. This means that the trend is up and the previous decline is just a correction.
The most likely wavenumber indicates that the breakout is part of the third wave. The reason for this is that wave three is usually the sharpest and longest of the five.
Hence, BTC is currently in wave four. There are two options for his impending move.
The first is a sideways pattern where BTC consolidates in a channel or triangle before breaking out. At the moment, this seems like the most likely prospect.
The second possibility is for BTC to complete a pullback with wave 4 before moving up. This means that the price will fall back into the channel before the uptrend resumes.
If so, the resistance level on the channel at $ 48,000 would be the one likely to end the correction.
BTC / USDT 2-hour chart | Source: TradingView
The long-term wavenumber also offers a very bullish outlook, suggesting that BTC will soon hit a new all-time high.
Most likely, BTC is in a 1-2 / 1-2 waveform. In this case the price is in the first part of an upward movement (orange) and will soon accelerate.
A potential drop in the second wave (orange) would allow Altcoins to outperform BTC. However, as BTC gets closer to a new all-time high, altcoins are likely to fall behind.
BTC / USDT daily 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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