Bitcoin Technical Analysis March 2nd

After breaking above the short-term descending resistance line, Bitcoin (BTC) is attempting a move above the $44,400 horizontal resistance area.

BTC is trading just below the key resistance area

Bitcoin has been rising along with the ascending support line since Jan. 24 and has created two long wicks below it after recovering from this line.

On February 28th, BTC created a large bullish bar and followed it with a smaller bullish bar the next day.

Currently, the price is trading just below the $44,400 resistance area. If there is a breakout, the next resistance will be found near $51,100.

Technical indicators are showing a bullish picture as both the RSI and MACD are bullish and the precursor is above 50.

However, the MACD also needs to enter positive territory to confirm the reversal of the uptrend.

BTC/USDT daily chart | Source: TradingView

Short term eruption

The six-hour chart shows BTC breaking above the descending resistance line. This is a strong sign that the short-term correction is over.

In addition, BTC also broke the 0.786 Fib retracement resistance level. This is the last major Fib level before a full retracement is performed.

BTC/USDT 6 hour chart | Source: TradingView

Although there is no clear short-term pattern, it is possible that BTC has been trading in a symmetrical triangle since March 1st. The triangle is generally considered a neutral pattern, suggesting that both breakouts and breakouts are equally likely

BTC/USDT 30-minute chart | Source: TradingView

count waves

The short-term numbers show that BTC is in wave four of a bullish impulse.

The main reason is that the price is holding above the resistance line of the ascending parallel channel BTC broke out of earlier and is likely to confirm this line as support.

A breakout above the symmetrical triangle sketched above would go a long way in confirming that this is the correct wavenumber.

Alternatively, at $43,000, BTC can drop towards the centerline of the channel and remain within a valid Wave 4 formation. This creates a pullback that includes wave 4.

However, a drop below the wave one high (red line) at $40,330 will invalidate that particular wave number.

BTC/USDT 2 hour chart | Source: TradingView

If confirmed as a five-wave pattern, the wave number would most likely indicate that the correction ended on Feb. 24 and the sub-five wave was aborted. .

This indicates that the entire structure is a running flat correction contained within an ascending parallel channel. If true, it would mean that BTC could steadily climb to a new all-time high and fail to break the Feb. 24 low.

BTC/USDT daily 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

SN_Nour

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