The technical picture favors bitcoin. The most likely scenario assumes an increase in the BTC rate towards at least $33,200. Bitcoin Weekly Chart Shows Some Strong Bullish Signals.
As the results of technical analysis show, on this timeframe, the BTC price made a bullish breakdown of the downward resistance line built from the historical maximum.
This breakout was reinforced by the formation of a long lower wick and a bullish engulfing candle that appeared on the chart the following week..
In addition, the weekly RSI rose above 50 (black) for the first time since June 2021.
Bitcoin is likely to head for long-term resistance at $31,700. In the event of a bounce, the price could fall back to $24,600.
The daily chart also reflects a bullish picture.. Here, the dynamics of the RSI index is especially noteworthy..
He is trying to make a bullish breakout of the bearish divergence trendline (green). This may indicate a bullish trend for BTC.
In addition, the price broke through the rising resistance line and turned it into support (green icon).
Over the past 24 hours, Bitcoin has strengthened above $30,000 for the first time since June 2022. Further, the nearest resistance will be the area of $31,800.
You should only be afraid of closing below the rising support line. In this case, the currency may weaken towards $25,000.
Meanwhile, wave analysis offers two possible scenarios for the development of events.. Both support growth in the short term, but the long-term scenarios differ.
As part of the first option, the BTC price is now in the fifth and final wave of the bullish impulse structure (white color).
Wave 5 is extended, and its length exceeded the length of waves 1 and 3 (white), as well as the Fibo level 1.61 of the outer correction of wave 4 (black).
The next likely target for the bulls will be the area between $34,500 and $35,500.
The second scenario assumes that BTC is still in wave 3 of the five-wave bullish structure (white). The results of the subwave analysis are shown in black..
This forecast gives a more optimistic view of the long-term growth prospects and promises a new all-time high for the price..
However, in this case, we will first see a correction and only then a resumption of growth.
In this scenario, BTC will rise to a high of $33,270, after which it will begin to correct.. However, then the price will start to rise again.
Thus, the most likely scenario for bitcoin assumes growth towards at least $33,200, and possibly $33,500..
This bullish outlook will be canceled if BTC falls below the descending resistance line.. In this case, a decline to $24,600 is likely.