Bitcoin surpassed significant resistance levels and closed above them, indicating a positive outlook for the cryptocurrency. Its price has been steadily increasing throughout the year, recording a 160% rise and reaching a new yearly high of $44,700 on December 8th.
However, there is some uncertainty regarding Bitcoin’s trend as it closed both above and below the 0.5 Fibonacci retracement level. This makes it difficult to determine whether the overall trend is bullish or bearish.
Source: TradingView
The relative strength index (RSI) is currently showing a bullish trend, with a rising value above the neutral level of 50.
Analysts on Platform X are optimistic about Bitcoin’s future. CredibleCrypto believes that the price will continue to rise due to increased buyer activity in the spot and futures markets. This is reflected in higher spot purchases on Coinbase, funding reboot, and a decrease in open interest. Likewise, Rekt Capital is optimistic, citing the upcoming Bitcoin halving.
According to Elliott wave analysis, the most likely scenario is that Bitcoin has completed the third wave of an upward movement and is now undergoing a correction phase. This correction could lead to a decline to immediate support at $40,000, followed by a move towards the next resistance level at $50,000 to complete the entire upward move.
Source: TradingView
However, a bullish breakout from the short-term channel could signify that the correction is already complete. In this case, Bitcoin may immediately rise to the $50,000 resistance level, representing a 15% increase from its current price.
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