Bitcoin finally broke through the important resistance at $ 52,500. Now BTC may continue to rise towards $ 57,000 or even renew all-time highs.
Bitcoin is trying to make a reversal
Bitcoin (BTC) bounced off the $ 44,500 support level on February 28 and has been strengthening since then.
The price stalled on March 3, but BTC still managed to form a pronounced bullish candle on March 8, and today it absorbed the maximum of March 3.
Technical indicators have completely moved into the bullish zone. The RSI bounced off the 50 area, while the Stochastic Oscillator began to rise and is now preparing to form a bullish crossover.
In addition, the MACD is giving bullish reversal signals. When this happened the previous two times (green arrows on the chart), the MACD moved into the green zone and started to rise significantly.
It is likely that this will happen again.
Short-term dynamics BTC
The 6 hour chart shows a bullish breakout of the 0.618 Fib level at $ 52,500. This is a very important move as Bitcoin has been trading below this mark since February 24th.
Fibo level 0.618 often plays the role of a top in corrections after a sharp decline in price. Thus, a recovery above it is a very optimistic signal.
In addition, the MACD and RSI indicators are rising.
On the 2-hour chart, BTC is potentially trading within a parallel channel. The price has now moved beyond its upper border, neutralizing numerous potential bearish divergence signals.
Accordingly, the short-term trend is also likely to be bullish.
Nevertheless, price movements in parallel channels are often corrective. If Bitcoin bounces off the channel resistance around $ 57,000, this could promise a new low for the price.
On the other hand, a bullish breakout from this channel could send BTC to new all-time highs.
In any case, we expect the pair to rise towards the resistance line of this channel with the current target around $ 57,000.
Wave analysis BTC
Most likely wave analysis results suggest that BTC is in the fifth – and final – wave (orange on the chart) of a bullish impulse structure.
The most likely target for this move is the $ 67,869- $ 71,884 range.
Underwave analysis is shown in black on the chart.
An absorption of the low of wave 2 at $ 42,300 would cancel this scenario and indicate that the BTC rate is correcting.
Conclusion
Thus, it is expected that bitcoin will grow until it reaches at least the upper boundary of the parallel channel in the region of $ 57,000. Its breakdown may cause an update of historical highs for BTC.
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