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Learn why Bitcoin is expected to break above 50k resistance

Bitcoin (BTC/USD) is breaking above key and critical resistance levels. The bullish impulse is starting to pick up pace. 

Can the Bitcoin bulls challenge or break the previous top and ATH (all time high)?

Price Charts and Technical Analysis

The BTC/USD daily chart was in a downtrend with lower lows and lower highs after price action completed a rising wedge reversal chart pattern (dotted purple lines):

  • Price action, however, respected the 61.8% Fibonacci retracement support level.
  • A bullish bounce confirms the wave 4 pattern (pink) after an ABC (blue).
  • Price has managed to break above 3 different resistance zones (dotted red lines).
  • Price is now moving higher in a bullish channel (green lines).
  • The momentum is strong because price action has stayed above the 21 ema high for more than 2 weeks and the 21 ema high and low also have a steep angle.
  • The momentum and wave patterns suggest more bullishness to test the previous top (blue arrows).
  • Bull flag patterns (orange arrows) would help confirm the bullish outlook.
  • The previous tops have now become a support zone (green box).

On the 4 hour chart, price action is showing strength to the upside and corrective movements to the downside. The bulls are fully in control:

  • The bullish price swing is probably a wave 3 (green). 
  • A break above the -61.8% Fibonacci level would help confirm this outlook.
  • A small retracement could take place but price action should respect the support zone (green).
  • Any deeper retracement could place the current wave view on hold. In that case, a larger and deeper wave 1-2 pattern could take place.
  • With a bullish continuation, price action should be in a wave 3 of wave 3.

The analysis has been done with the ecs.SWAT method and ebook.

Author

Chris Svorcik

Chris Svorcik

FS method

Chris Svorcik is a trader, analyst, and educator with over 15 years of experience in financial markets, specializing in moving averages, market structure, and price patterns.

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