Bitcoin Technical Analysis February 16th

Bitcoin (BTC) once again failed to break the $45,000 resistance area on Feb. 16, but technical indicators are suggesting that it is preparing for another short-term rally.

Highest daily close

Bitcoin rallied significantly on February 15, reaching a close of $44,544 (red icon). A high is forming inside the horizontal resistance area of ​​$44,300.

Although the price failed to surpass this level, it is worth noting that although Bitcoin hit a high of $45,821 on May 10, yesterday’s close was the highest since the uptrend began. 2. Buyers trying to hold and close this level is a very positive development.

A break above this resistance level could result in a rapid rally in price.

Bitcoin/USDT daily chart | Source: TradingView

future movement

A broader view shows that the next resistance can be found at $51,100. This is the 0.5 Fib retracement resistance and also the horizontal resistance area. If BTC can break out of the current zone, it will reach this level.

Despite the potential bearish divergence forming within the RSI (green line), technical indicators are still bullish. The RSI is above 50 and the MACD is about to break into the positive territory. Furthermore, the move created a higher momentum bar and halted the three-day decline.

BTC/USDT daily chart | Source: TradingView

count waves

The wave count shows that BTC has now started the fifth and final wave of an upward move (red).

The most likely target for the top of the move is between $47,625 and $47,912. This area is the length of wave one (red) and the outer 1.61 Fib retracement level of wave four (black). It also coincides with the centerline of an ascending parallel channel (white) formed by the joining of the crests and troughs of waves one and three.

BTC/USDT 2 hour chart | Source: TradingView

The number of partial waves also shows that Bitcoin will soon start the fifth and final partial wave (black). This subwave must last for the price to reach its target.

Considering that BTC is also in wave five, the mid-year wave is likely to last longer.

BTC/USDT 30-minute chart | Source: TradingView

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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