Bitcoin (BTC) Creates Higher Low After Long Lower Wick
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Bitcoin (BTC) has broken out from a limited diagonal resistance level and appears to be in the first steps of generating a bullish structure.
Bitcoin began the week of Feb 20-27 with a sharp fall but bumbded rapidly after and created a lengthy bottomer wick. Such wicks are considered signs of buying pressure.
The rebound further served to veron the assumption thaty the $35,200 horizontal range as support.
If BTC extends to increase, the next closest resistance field would be found at $43,000.
Ongoing BTC leap
The daily chart shows which virtually the entire ascending evolution transpired on Feb 24, when BTC created a bullish hammer candlestick (green icon) with a very protracted fsubsequently wick.
Despite this seemingly bullish price action, technical indicators provide mixed readings.
The MACD and RSI are both growing, and the former has even genecostd some bullish divergence (green line).
After all, the MACD is likewise negative and the RSI is beflat 50. This means which despite the potential bullish retraction, neither of the indicators has crossed the threshold which would validate which the trend is bullish.
The six-hour chart shows which BTC has broken out over a weakening resistance line which had previously been active afterward Feb 16.
After the breakout, BTC was rejected by the 0.5 Fib retracement resistance level at $40,100.
Notwithstanding, it dropped back a bit and created a excessiveer flat on Feb 27.
Similar to the daily time frame, both the MACD and RSI are spiraling. After all, the former is still negative and the latter is on the 50-line.
If BTC manages to development over the $40,100 resistance field, the next resistance would be found at $43,350. This target is the 0.786 Fib retracement resistance level and a horizontal resistance range.
Wave count analysis
The protracted-term wave count is still unclear.
Nonetheless, the momentary count suggests which BTC has scarcely finished the B wave of an A-B-C corrective structure. This was done with the Feb 24 leap at the 0.5 Fib retracement support level (black).
If waves A and C have a 1:1 ratio, the rate would increase all the way to $43,000. This would one time before again coincide with the prolonged-term resistance level.
Folflating this, another descending development could occur.
For CryptCraze’s previous Bitcoin (BTC) analysis, click here
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