On March 1, Bitcoin corrected from the $ 44,600 intermediate support area and peaked just above $ 50,000.
Perhaps this is the beginning of an upward movement that will bring the coin back in the 50 650- $ 52 450 range.
Bitcoin pushed off support
On March 1, Bitcoin (BTC) corrected from the intermediate support area, formed a bullish engulfing and reached $ 49,790. The RSI also recovered from the 50 area.
This is a strong bullish signal, but technical indicators do not yet confirm a trend reversal.
MACD continues to decline. Stochastic has formed a bearish cross. The next support area is at $ 38,600.
Wedge breakout
On the six-hour chart, BTC has broken out of the falling wedge and is currently approaching the 0.5-0.618 Fibonacci retracement area ($ 50 650- $ 52 450).
Technical indicators turned in a bullish direction: MACD formed a bullish reversal signal, RSI crossed the 50 line.
The two-hour chart shows signs of decline in the form of bearish divergence. However, this signal is of little relevance in the context of bullish price action on long-term charts.
Thus, BTC could correct to the intermediate support of $ 47,700. If it survives the test, we can count on a new bullish spurt.
Wave analysis
Wave counting suggests that BTC is in the fifth wave of bullish impulse (shown in white) that began in March 2020.
The potential top is in the $ 63,900- $ 66,550 area. It is determined by a combination of Fibonacci projection levels.
On closer inspection, it becomes clear that growth is impulsive. Thus, it is possible that prices are at the beginning of the mentioned upward movement.
This means that despite the high probability of a downward correction in the short term, Bitcoin will recover and continue to grow.
Conclusion
In the short term, Bitcoin is likely to experience another correction, however, then the growth will resume and the coin will return to the range of $ 50 650- $ 52 450, followed by a breakout in the bullish direction.
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