Will Bitcoin break through the long-term resistance level?
The weekly chart indicates that Bitcoin has been experiencing a significant surge in price since October. During this rally, the price has formed eight consecutive bullish weekly candles and reached a new yearly high of $44,700 last week. It is currently positioned above the horizontal resistance level and the key Fibonacci level.
Although there has been a slight decline in price this week, it quickly recovered and almost regained all of its losses. Now, the focus is on determining whether the candle at the end of this week will be bullish or bearish (represented by a red icon).
Source: TradingView
The relative strength index (RSI) is also showing growth and is above the neutral level of 50, but it has entered overbought territory.
What do analysts have to say?
Cryptocurrency traders and analysts on Platform X are optimistic about the short-term trend of BTC.
ShardiB is bullish due to the presence of a short-term triple bottom pattern that is driving the current upward movement.
Source: X
TheScalpingPro has presented two possible scenarios:
“The price continues to rise and reaches $48,000 before experiencing a deeper pullback to the low of the range. (There may be a fakeout above the middle of the range followed by a retest of the Fibonacci level 0.618).
The price has reached a local top in the middle of the range and will start declining from here to $35,000 before the next significant surge. (There may be consolidation with multiple retests before a correction to the monthly support level of $35K).
Regardless of which scenario plays out, the overall sentiment is bullish, with any dips seen as buying opportunities.”
MooreCryptoNL is also bullish based on a wave chart analysis, suggesting that another rally towards a new yearly high is likely.
BTC Forecast: What’s the next target for Bitcoin’s price?
According to Elliott wave analysis, the most probable scenario indicates that Bitcoin is approaching the peak of the third wave within a five-wave upward movement (represented in white). It is worth noting that the third wave is extended, and its subwaves are highlighted in black on the chart.
According to this scenario, the target for the top of the third wave is projected at $47,600 (which is equivalent to the combined length of the first and third subwaves). This would represent an increase of 11% from the current price.
Consequently, Bitcoin may then enter a corrective wave four. The presence of bearish divergence (highlighted in green) on the RSI suggests that the upward movement may be nearing its end.
Source: TradingView
However, if there is a close below the breakout level (indicated by the red line) at $38,000, it would mark the beginning of the fourth wave. In such a case, BTC could experience a 22% decline and find immediate support at $33,000.
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