The price of Bitcoin has recently hit a new annual high of $44,730, but has since slightly decreased. BTC is currently struggling to break through a significant long-term resistance and Fibonacci level.
Bitcoin’s Weekly Uptrend
The weekly timeframe reveals that Bitcoin has been experiencing a major uptrend since October, reaching a new yearly high of $44,730 on December 8. During this rally, BTC formed eight consecutive bullish weekly candles, allowing the price to surpass an important horizontal and Fibonacci resistance area.
Last week presented a change in dynamics as Bitcoin formed its first bearish weekly candle since the start of the uptrend. The coin also dropped below a key resistance level, potentially indicating that the previous bullish breakout was only a temporary price deviation.
However, BTC seems to be finding support again and is currently attempting to regain this horizontal level (marked by the red circle).
Source: TradingView
Currently, the relative strength index (RSI) remains above the neutral level of 50 and is in overbought territory. Despite the slight decline, it has not fallen below 70, which would be considered a bearish signal.
Analyst Views
Cryptocurrency traders and analysts on Platform X hold mixed opinions regarding Bitcoin’s prospects.
One trader, Income Sharks, believes the short-term trend is bearish and expressed their skepticism by saying:
“They’ll say it’s stupid to sell, but then tell you to move all your money into a token called $BONER for $SOL.”
BTC/USDT hourly chart. Source: X
Another trader, TATrader Alan, refers to the upcoming Bitcoin halving and suggests that the price could reach $60,000 before retracing to $50,000.
Lastly, Trader Tim made use of a horizontal range to predict that the price of BTC will soon exceed $45,000.
BTC Forecast: Price Adjustment Continues?
The most plausible Elliott Wave analysis scenario indicates that BTC has entered the fourth wave as part of a larger five-wave upward movement (depicted in white) that began in September. Sub-wave analysis (depicted in black) demonstrates an extended third wave.
Its completion is signified by a strong bearish divergence in the daily RSI, where price growth is accompanied by a decrease in momentum. This often precedes downward movements and is also confirmed by the fact that BTC is currently trading within an ascending parallel channel.
Consequently, the initial target for completing the fourth wave is located at minor support around $40,300, which is 9% below the current price. Following this, the price is expected to initiate a new upward movement and conclude the fifth wave.
Source: TradingView
In the event of a bullish breakout from the channel, the fourth wave would be considered complete, potentially triggering a 15% surge towards the next resistance level at $50,000.
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