Bitcoin (BTC) hit a new all-time high of $ 67,000 on October 21, before falling slightly. It is likely to approach the local peak in the short term.

Day outlook

BTC has risen briskly since breaking above the USD 57,200 resistance area on October 14th. Six days later, it hit a new all-time high of $ 67,000.

However, it is currently in the process of creating an engulfing bearish candle. It will do this with a daily close below $ 64,280. This means that Bitcoin creates a tweezers-top pattern that usually occurs at the top of an uptrend and signals a potential reversal. However, there are still more than 16 hours until the daily closure, so that there is enough time to negate this.

Technical indicators continue to rise but show signs of weakness.

The MACD is in positive territory and rising, but its histogram is in the process of creating a lower momentum bar (red icon). This is a sign that Bitcoin may be in the early stages of a reversal.

The RSI is about to drop below 70 (green symbol). This is a sign that the momentum is weakening.

Finally, the supertrendline is bullish and currently stands at USD 57,200 (green circle). The indicator uses volatility to predict the direction of the trend and usually acts as a support / resistance.

Therefore, if BTC goes down, the USD 57,200 area will serve as support.

BTC / USDT daily chart | Source: TradingView

Signs of weakness

The six hour chart is showing signs of weakness as both the MACD and RSI create bearish divergences. This means that the rise in price is not accompanied by an increase in momentum and often results in a pullback.

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 the uptrend completes, a correction is likely to occur.

The most likely target for the climax of this rally is $ 70,000. This goal is found by projecting the length of waves 1-3 onto the bottom of the fourth wave. It will also coincide with the resistance line of the short-term rising parallel channel.

If BTC fails to hit that target, a correction will be confirmed if price breaks below the support line that connects waves two and four.

BTC / USDT 6-hour chart | Source: TradingView

The long-term wavenumber is bullish and BTC is predicted to break the $ 100,000 mark.

The most likely possibility is that BTC is forming a big 1-2 / 1-2 wave. This means that the bullish momentum is expected to pick up quickly once the current correction is over.

There is a confluence of support levels between $ 52,150 and $ 53,300 created by the 0.5 Fib Retracement Support Level of the most recent upward move (orange) and the 0.382 Fib Retracement Level of the longer term upward move (white).

However, this area of ​​support could change if BTC has not yet peaked.

BTC / USDT daily chart | Source: TradingView

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