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Bitcoin (BTC) continues to give bullish reversal signals that intensified on December 15th. Such a reversal will be confirmed in the event of a breakout from the short-term pattern.
Bitcoin (BTC) recorded a small gain on the daily chart on Dec 15, but never recovered above the Dec 13 high.
Technical indicators provide strong signals for a potential bullish reversal. This is especially noticeable in the bullish divergence, which marks the RSI (green line). Such signals often precede a bullish trend reversal, as they indicate that a decline in price was not supported by weakening momentum.
The MACD has also formed several consecutive rising momentum bars. This means that the short-term MA is accelerating relative to the long-term MA.
Thus, based on the daily chart, BTC may reverse soon, although this has yet to be confirmed.
Source: TradingView
Current pattern
On the 6-hour chart, Bitcoin confirms the results of the daily timeframe analysis. At the same time, here the bullish divergence for MACD is even more pronounced. This increases BTC’s chances of a final bullish breakout.
In addition, the coin is traded within a descending parallel channel. It is traditionally considered a corrective pattern, and this suggests that the most likely scenario would be a bullish breakout of BTC from this channel.
In this case, the nearest resistance will be expected for the pair between $ 52 450 and $ 55 650 (Fibo levels of 0.382-0.5 correction).
A source: TradingView
Another descending parallel channel can be seen on the hourly chart. After yesterday’s rally, Bitcoin is at the top of this channel, approaching the $ 49,500 breakout level.
Source: TradingView
BTC Wave Analysis
According to most likely scenario wave analysis, BTC is still correcting.
Short-term analysis shows that the price is now inside wave C of the ABC structure. The most common ratio for such patterns is a 1: 1 ratio of A: C waves, which indicates that they are the same length.
This can bring the BTC rate to a maximum around $ 55,800. This corresponds to the Fibo resistance levels we identified earlier.
Source: TradingView
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