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Probably bitcoin (BTC) completed the correction and made a bullish breakout from the mid- and short-term price patterns.
Bitcoin (BTC) hit its all-time high on November 10 and has since moved along a downward resistance line.
During the period from December 4 to December 19, the RSI and MACD indicators gave very strong bullish divergence signals (green lines). Such signals are often a harbinger of a bullish trend reversal, as they demonstrate that a decline in price is not accompanied by a weakening of momentum.
After this bullish divergence, the BTC rate began to rise and eventually broke through the downward resistance line on December 21.
The nearest resistance is now located between $ 55,500 and $ 58,700 (Fibo levels of 0.5-0.618 correction).
A source: TradingView
Bullish breakout
On the 2-hour timeframe, BTC has already made a bullish breakout from the short-term downtrend parallel channel that has been on the chart since Dec 7. This is another indication of the completion of the correction.
Immediate resistance is in the $ 50,600 area. If Bitcoin breaks through it, it could accelerate its growth towards the next bullish targets.
Source: TradingView
BTC Wave Analysis
Short-term wave analysis suggests that it has completed a complex corrective structure (highlighted in the chart) and has now begun a rebound.
A common ratio for such corrections is a 1: 1 W: Y ratio. If this is confirmed, then BTC will reach a maximum around $ 55,500, which coincides with the resistance area we highlighted above.
Source: TradingView
In the longer term, it is still unclear whether the current growth phase is part of wave B (black), which will ultimately lead to a new drawdown, or whether we are dealing with the beginning of a new impulse.
When Bitcoin reaches the top of this wave, price action in that area will shed light on the further direction of the overall trend.
Source: TradingView
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