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Bitcoin (BTC) has been growing since March 7th. On March 9, the price managed to make a bullish breakout of the short-term resistance level.
Bitcoin has been moving along an ascending support line since January 22. The BTC rate tested this level four times for strength (green icons). The last time it happened was March 7th. In addition, the price broke below this line twice, after which it formed a long lower wick and soon recovered above this support.
After bouncing on March 7th, BTC rose slightly the next day and then launched a more aggressive rally that is still ongoing. At the time of writing, the price managed to reach a high of $41,884.
A source: TradingView
On the 2-hour chart, Bitcoin started to rebound on March 7, bouncing off the $37,800 horizontal support area (green icon).
After that, BTC broke through the descending resistance line that has been present on the chart since the beginning of March.
At the time of writing, the coin is trading between Fibo levels 0.5-0.618 at $41,300 – $42,250. A recovery above this area will confirm that the short-term trend for Bitcoin is bullish.
Neither the MACD nor the RSI are currently showing signs of weakness. Both indicators are rising, with the MACD in the green and the RSI above 70. Both of these signals are considered bullish.
Results of the long-term wave analysis remain unclear, and short-term analysis also offers several options for the development of events.
In the first scenario, bitcoin probably completed the formation of a five-wave descending structure on March 7th. The current growth is in this case part of the ABC corrective structure. If the price bounces from the current level, we may see a drawdown to new lows.
A source: TradingView
The bullish scenario suggests that the BTC decline since Feb 10 was part of a “running flat” correction with a truncated wave C that failed to absorb the lows of wave A.
If this scenario is confirmed (which requires a price increase above $45,332), Bitcoin could rush to new highs.
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