Bitcoin (BTC) quickly reversed its course after falling sharply on October 13 and was able to break out later in the day.

As it appears to be nearing the upper end of the uptrend, BTC is expected to make one final upward move before correcting.

BTC breaks resistance

Bitcoin began a sharp drop on October 13th, sending the price back to $ 54,000. However, it quickly reversed, leaving a long wick underneath. This is a sign that buying pressure is still very strong at lower levels.

BTC has now moved above the USD 57,200 resistance, which is both a horizontal resistance area and a 0.786 fib retracement resistance. This is the final point of resistance before the price climbs to an all-time high. If the price does not reverse today, it will be the first daily close above this resistance area since early May.

Technical indicators are rising – The MACD is in positive territory and rising. This value means that the short-term trend is moving faster than the long-term trend.

The RSI has also risen above 70 again. The RSI is a momentum indicator and a move above 70 suggests a strong uptrend although it has now entered the overbought territory.

Hence, indicators from the daily timeframe show that the trend is still bullish.

BTC / USDT daily chart | Source: TradingView

Future movement

The six-hour chart shows that BTC is about to break out via an ascending parallel channel.

It also shows that the uptrend resumed after the RSI created a hidden bullish divergence (yellow line).

Breaking bitcoin through this channel will likely accelerate the rate of increase.

BTC / USDT 6-hour chart | Source: TradingView

Count waves

The short-term wave count shows that BTC is on the fifth and final wave of an upward pulse. This means that once this phase has been completed, there will be an adjustment phase.

The two most likely destinations range from $ 59,700 to $ 60,000 to $ 63,250 to $ 63,850. These target areas are determined based on the length of wave one (white) and the length of wave 1-3 (black).

BTC / USDT 2-hour chart | Source: TradingView

The number of long-term waves shows that BTC forms waves 1-2 / 1-2. This means that once the correction is complete, the price will rise very sharply.

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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