Bitcoin (BTC) continues to show signs of a bullish reversal with its December 15th rally. This reversal will be confirmed on a breakout above the current short-term pattern.
The daily chart shows that BTC rose slightly on December 15th, although it has not yet reached the high of December 13th.
Technical indicators are showing strong signs of a possible upside reversal. This is particularly evident from the bullish divergence in the RSI (green line). This is a signal that often precedes an upward trend reversal as it means that the price decline has not been accompanied by a decrease in momentum.
In addition, the MACD has gradually created higher momentum bars. The MACD is made up of short-term and long-term moving averages (MAs) and means that the short-term MA is slowly regaining its position relative to the long-term MA.
Hence, the daily timeframe suggests that a reversal could occur soon, even if it has not been confirmed.
BTC / USDT daily chart | Source: TradingView
The six-hour chart further confirms the daily chart’s outlook and shows a more pronounced bullish divergence in both the RSI and the MACD. This increases the likelihood of a BTC outbreak.
In addition, BTC trades in a descending parallel channel. This is generally viewed as a corrective pattern, meaning that a breakout over the channel would be the most likely scenario.
In this case, the closest resistance is between $ 52,450 and $ 55,650. This target area is created by the 0.382-0.5 fib retracement resistance levels.
BTC / USDT 6-hour chart | Source: TradingView
Finally there is an analog channel in the hourly time frame. After yesterday’s rally, BTC is in the upper part of this channel and approaching the resistance line of the channel at $ 49,500.
Hourly BTC / USDT Chart | Source: TradingView
Long-term wave counting shows that BTC is still in a correction.
The shortwave count shows that it is within wave C of the ABC movement. In such structures, the most common ratio for AC: C waves is 1: 1, which means that they are the same length.
This will result in a high near $ 55,800, in line with previous Fib resistance levels.
BTC / USDT 30-minute 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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