Bitcoin Technical Analysis February 17th

Bitcoin (BTC) is likely to make another attempt to break the $44,300 resistance area.

Bullish signal from technical indicators

On Feb. 16, BTC made a close of $44,583, just above the $44,300 horizontal resistance area, before falling slightly the next day. Despite the decline, technical indicators are still bullish as both the RSI and MACD are rising. The MACD has been consistently producing higher momentum bars while the RSI is above 50. Both are signs of an uptrend.

If there is a breakout, the next resistance will be found at $51,140.

Source: TradingView

Breakthrough

The 6-hour chart shows that Bitcoin broke above the ascending resistance line on February 4th.

It then bounced back to confirm the line as support on the 14th (green icon) and prices have mostly been up since then.

Source: TradingView

The two-hour chart shows BTC still trading below a short-term descending resistance line, which has been confirmed multiple times so far. A break above this line will also cause a break above the horizontal resistance area outlined earlier.

 Source: TradingView

Count waves

Wave count shows that BTC is in wave five of a bullish impulse (red) initiated on Jan. 24. Since neither wave one nor wave three expands, it makes sense that wave five does.

A drop below $43,000 will challenge this wave number as it will cause the price to drop below the trendline associated with the bottom of waves 2 and 4 (white). The resistance line of this channel currently stands at $51,000, which coincides with the horizontal resistance area outlined above.

BTC/USDT 2 hour chart | Source: TradingView

The hourly chart shows BTC completing partial waves one and two of the same upmove (black).

There are several goals for completing this model.

The first target is between $47,700 and $47,900. This area is created by the outer Fib retracement level of wave four (black), giving waves one and five a 1:1 ratio.

However, as wave five is more likely to widen, targets at $49.553 and $51.445 make more sense.

The second level gives waves one and five a ratio of 1:1.61 and also merges with the horizontal and diagonal resistance levels mentioned above

Hourly BTC/USDT 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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