October 19 Bitcoin technical analysis

Bitcoin (BTC) has broken the last resistance area and is now just under $ 2,000 below its all-time high. While the technical indicators are still bullish, the wavenumber indicates that BTC is nearing the apex of the bullish move.

Day outlook

The daily chart offers a bullish outlook for Bitcoin as it broke the USD 57,200 resistance. This is the 0.786 fib retracement resistance and also the last resistance before hitting the all-time high.

Hence, there will be no further resistance until the price hits the all-time high of $ 64.854, which it hit in April 2021.

Technical indicators also paint a bullish picture.

MACD is in positive territory and increasing. This means that the short term trend is moving faster than the long term trend and is a positive sign of an upward trend.

The RSI has also moved above 70. This shows that the momentum is clearly bullish even though it is in the overbought territory.

Therefore, the daily chart paints a bullish picture.

BTC / USDT daily chart | Source: Tradingview

Short term movement

The two-hour chart shows that Bitcoin broke out through a parallel channel and then recovered from the resistance line (green symbol).

This suggests that the resistance line will act as support in the short term.

Technical indicators also support the continuation of the trend. The RSI is above 50, a sign that the short-term trend is bullish.

More importantly, the MACD has created a potential bullish divergence. This is a strong sign that the trend is continuing.

Therefore, the signals from the two-hour period also suggest that the upward trend is likely to continue in the short term.

BTC / USDT 2-hour chart | Source: Tradingview

Count waves

The short-term wavenumber indicates that BTC is on the fifth wave of a bullish pulse. This is the last wave after which a correction is likely to occur. The long-term wavenumber is bullish, but it also suggests that price is likely to correct before the uptrend resumes.

BTC appears to be very close to the top of the rally when using the Fib tools to determine the length of the rally.

The range that is likely to act as the tip of the move is between $ 63,250 and $ 63,850. This area is found by projecting the length 1.61 of wave one (white) and the length 0.618 of wave 1-3 (black).

Therefore, if this wave stops expanding, BTC is likely to peak soon.

BTC / USDT 2-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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