Bitcoin (BTC) has been rising since March 7 and managed to break above short-term resistance on March 9.
Bitcoin has been rising above an ascending support line since January 22. The line has been verified four times (green icons), most recently on March 7. Furthermore, BTC broke below this level twice, but remained low for a long time and quickly reclaimed the support line.
After rebounding from support on March 7th, there was a slight increase in price the following day, but another significant rally started on March 9th, which is still in progress. So far it has reached a high of $42,400.
bitcoin moves above descending resistance
The two-hour chart shows a turning point on March 7 after BTC bounced off the $37,800 horizontal support area (green icon).
This has caused BTC to break a descending resistance line that it had previously held since the beginning of March.
Currently, it is trading with the 0.5-0.618 Fibonacci retracement resistance level at $41,300-$42,250. A retest of this level indicates that the short-term trend is bullish.
Currently, neither the MACD nor the RSI is showing any signs of weakness as both are trending upwards. Moreover, the MACD is positive and the RSI is above 70 – both of which are general signs of a bullish trend.
wave count analysis
Long-term wave count remains unclear and there are many possible short-term BTC wave counts at play.
First calculations suggest that the five-wave downward move ended on March 7. In this scenario, continued growth is part of the ABC corrective framework. If BTC is rejected at current levels, it would indicate that this is a correct calculation and new lows will follow.
The bullish count shows that the decline was part of an ongoing flat correction since February 10. In this, wave C was shortened and wave A failed to fall below A’s lows.
If true, this could take BTC to new local highs. A rise above $45,332 would confirm that this is a correct wave count.
For previous bitcoin (BTC) analysis from BeInCrypto, click here