Bitcoin Technical Analysis December 24th
Bitcoin (BTC) has broken out of a short-term corrective pattern and appears to be heading for the next resistance area at $ 55,500.
Short-term canal eruption
Between December 7 and December 21, BTC fell into a descending parallel channel. It broke out on December 21st and initiated the current upward trend. This confirms that the short-term correction has been completed.
Two days later, it confirmed the channel’s resistance line as support (green icon) and continued to move upward at high speed.
So far, it hit a high of $ 51,550 on December 24th.
BTC / USDT 2-hour chart | Source: TradingView
The six-hour chart shows that BTC is likely trading on a different channel, this time on an ascending channel.
Attempts are currently being made to reclaim the center line of the canal. If executed successfully, a move towards the resistance line is expected.
The channel’s resistance line coincides with the 0.5 fib retracement resistance at $ 55,500, adding to its importance.
BTC / USDT 6-hour chart | Source: TradingView
An interesting development is the development of a bullish engulfing candle on the weekly chart. This is a bullish candle with all of the previous drop covered in a real body.
When this happened the previous two times, BTC rebounded 81% and 73%, respectively.
If BTC completes this bullish candlestick pattern, it is likely to rise in a similar fashion.
BTC / USDT weekly chart | Source: TradingView
You can see the BTC 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.