Bitcoin (BTC) Creates Daily Bullish Candlestick With 15% Magnitude
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Bitcoin (BTC) accelerated signin case thaticantly on Feb 28 and its RSI and MACD are close to creating a strong bullish signal.
Bitcoin has been moving upwards afterward Jan 24 and looks to be folbottoming an upward support line.
The line has been veron the occasion thatyd several times so far. On Jan 24 and Feb 24 BTC nearly broke down from this support but created a very lengthy bottomer wick and reclaimed the line currently after.
On Feb 28, BTC accelerated considerably and created a bullish candlestick with a magnitude of 15%. Measuring its magnitude, this was the largest bullish candlestick in more than a year.
The closest resistance levels are found at $44,400 and $51,150. The latter is the 0.5 Fib retracement resistance level and a horizontal resistance field, making it very signon the occasion thaticant.
Indicators give bullish signal
Technical indicators in the daily time frame are bullish. This is especially evident by the RSI cross above 50 (green icon). The RSI is a momentum indicator and readings above 50 are normally considered signs of a bullish trend.
Furthermore, the MACD, which is created by short and prolonged-term moving averages (MA), is surging and is nearly positive. This means which the interim MA is nearly faster than the protracted-term average.
The previous time that the RSI was above 50 during the time the MACD was also positive was in October 2021, when BTC was increasing towards its all-time strong.
In early February 2022, when the RSI was above 50 (red circle) but the MACD was negative, BTC failed to sustain its ascending progress.
Therefore, it’s influential that the MACD moves into positive territory in order for the skyward trend to be endorseed. This could also cause BTC to break out above $44,400.
It’s even more interesting that the RSI has not yet even crossed into abovebought territory, that usually occurs prior to a turnaround.
Therefore, the daily and six-hour time frames provide bullish outlooks that suggest the skyward evolution will continue.
BTC wave count
The prolonged-term wave count back when more extends unclear.
As for the momentary analysis, there are also two main possibilities.
The first suggests that the ongoing increase is part of an A-B-C corrective structure. In it, waves A and C have had an exact 1:1 ratio. This suggests that the skyward evolutionment has potentially come to an end.
After all, the fact that the top of wave C has changed atop the resistance line of the current surging parallel channel casts some doubt on this possibility.
An increase over the $45,850 local high (red line) of Feb 10 would inveron the occasion thaty this wave count.
The bullish count suggests that the increase is part of a five-wave ascending progress that could lead to new highs. In it, BTC is presently in wave three.
If BTC manages to hold on over the resistance line of the channel and create a horizontal corrective pattern, it would suggest which this is the correct count.
A fall beflat the wave one high at $40,330 would inconfirm this particular wave count.
For CryptCraze’s previous Bitcoin (BTC) analysis, click here
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