Following the bullish breakout on March 8, Bitcoin continues to strengthen and is poised to rise towards the resistance line of the current short-term pattern.
Bitcoin aiming on $56,000
Bitcoin (BTC) made a bullish breakdown of the $ 51,900 resistance area on March 8 and has continued to rise since then.
On March 9, the price reached a high of $ 55,803, after which it formed a bearish candle and declined sharply. The maximum was noted directly above the Fibo level of 0.786 of the correction of the last decline.
Accordingly, BTC is currently trading between support at $ 51,900 and resistance at $ 55,000.
The MACD and RSI indicators are growing, supporting the potential for further growth.
Parallel channel
On closer inspection, you can see that Bitcoin has been trading within a parallel upward channel since February 28. Often, parallel channels are an indication of corrective momentum that could suggest an impending bearish breakout.
However, BTC has rebounded from the median line of this channel and is growing. At the time of writing, the price is moving towards the resistance of this channel. Depending on when the price hits that line, it could coincide with the all-time high of $ 58,532 on February 21st.
The further fate of the trend will depend on whether the BTC rate succeeds in breaking through this barrier or the price bounces off it. Price behavior will show whether we are dealing with a new impulse or a corrective rally.
Wave BTC analysis
The results of the wave analysis suggest that BTC is in the fifth – and final – sub-wave (orange on the chart) of a long-term five-wave impulse structure (white).
The most likely target for this move is the $ 63,882- $ 66,548 range.
The reversal level for this scenario has been moved higher and is now below $ 46,294 (red line). Accordingly, a decline below $ 46,294 would mean that BTC is ready to move further south.
Conclusion
Thus, Bitcoin is expected to continue to rally in the direction of the resistance line of the current channel. The further fate of the trend will depend on whether the BTC rate will be able to break through this barrier or the price will roll back from it.
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