The price of bitcoin (BTC) dropped significantly on April 7, but bounced back as soon as it reached the $ 55,500 support area.
The BTC is expected to break out of the current trading pattern and try to move above the $ 59,500 resistance zone.
BTC refused to support
Bitcoin has been moving down since reaching a high of $ 61,884 on March 13th.
Throughout the decline, it follows a downward line of resistance that has so far rejected BTC three times.
On April 6, the BTC was repulsed by the line for the third time and began to move downward. He concluded this move when it reached a local low of $ 55,473, just above the 0.5 Fib retraction support level.
Despite the jump, technical indicators do not confirm a bullish reversal.
The main resistance area is at $ 59,500, just above this rising line of resistance.
We need to look at short-term developments to determine if BTC can break out.
The two-hour chart shows that BTC trades within a declining parallel channel. This is often a corrective movement that leads to a breakthrough in the other direction.
Furthermore, this possibility is supported by technical indicators. The MACD is already showing a bullish reversal signal and is moving upwards.
Therefore, BTC is expected to break out of the channel.
Wave counting for BTC
The steady decrease looks like an ABC corrective structure, in which the A: C waves have a 1: 1 ratio.
This is very common with such updates.
It further supports the possibility that the correction is now complete and that the price will break out of the channel. A new all-time high is expected in the near future.
For a longer term number of waves click here.
BTC is expected to break out of the downstream channel it is currently trading. After that, he could try to move above the $ 59,500 resistance zone.
For a preliminary analysis of BeInCrypto’s Bitcoin (BTC) click here.