What to expect next after BTC/USD break above $50k
Bitcoin (BTC/USD) has managed to break above the psychologically round leve of $50k. Can the cryptocurrency challenge the previous high again?
Let’s review the long-term charts to analyse the remainder of the year 2021. Will the 2021 bull run outpace the 2017 bull run?
Price charts and technical analysis
The BTC/USD is showing a strong bullish recovery after a deep bearish pullback:
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Price action has managed to break above the 21 ema zone again.
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The bullish momentum is expected to challenge the previous top (blue arrow).
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The previous top is a strong resistance zone and could stop the uptrend.
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A bearish retracement (orange arrows) could complete an ABC (blue) in wave 4 (pink).
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A bullish bounce (green arrow) could take place at the support zone (green box).
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A bull flag pattern (grey arrows) however indicates that the immediate uptrend remains valid. In that case, a wave 4’ finished at the recent low.
On the daily chart, we see that the bullish momentum is strong because price action remains above the 21 ema zone for a long time:
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The bullish price swing is either a wave C or 3 (orange).
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This depends on the price reaction at the resistance zone (red box).
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A bearish reversal (red arrow) indicates a wave C and more bearish correction.
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A flag pattern (grey arrows) indicates a wave 3 continuation.
The analysis has been done with the indicators and template from the SWAT method simple wave analysis and trading. For more daily technical and wave analysis and updates, sign-up to our newsletter
Author
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.
