BTC bullish: expect to move towards $ 26,000 with an interim correction at $ 21,500
We offer an analysis of the further situation on the BTC investment market. Based on technical indicators, Bitcoin is on the wave of a third bullish impulse with five sub-waves.
So, let's recall that Bitcoin (BTC) continued its upward movement after breaking through the resistance line of $ 19,500-20,000. The maximum in history - $ 23,800 - was reached on December 17. But, judging by the information below, this is not the limit!
Analysts say the first cryptocurrency is in an uptrend and will continue to rise to higher numbers after a possible correction. As of this writing, BTC is trading at $ 22,907, showing a slight drop of 0.38%.
Daily technical indicators generally show price increases. In addition to having a significant rally yesterday, the RSI has just returned above 70 and the MACD-Histogram is now positive. The bullish trend will continue after the formation of the Harami cross pattern.
On the 2-hour chart from TradingView, you can see BTC trading above the upward support line. However, lower timeframes show slight weakness as the RSI and MACD readings move lower. The histogram already shows a signal for a future reversal when the coin price crosses all three lines of the indicator.
In case of bearish sentiment, the BTC price will start testing the $ 21,000 support level with a 0.618 Fibonacci level coinciding with an upward support line.
In the long term, Bitcoin is on the 5th long-term cyclical wave, which will take it to $ 26,000, analysts say. The wave number for this cycle is marked in orange on the chart below.
Bitcoin is currently on wave 3, which was confirmed by a breakout from the parallel channel connecting waves 1 and 2 on the chart. It is quite probable that two scenarios will develop at once upon reaching the top of the 3rd wave:
- $ 25,871 (Fibonacci index 2.61 of the first wave (orange)).
- $ 23,654 (will give waves 1-3 a 1: 1.61 ratio (black)).
Based on this, Bitcoin has probably already completed the third wave and is confidently moving towards the fourth.
On the TradingView chart, presumably, there are prerequisites for the continuation of the third wave, as only two upward movements are visible instead of three. Thus, BTC will undergo another rise before a possible correction.
Subsequently, bitcoin could drop in price to $ 21,000-21,500 (green circle) to complete the fourth sub-wave before moving up.
Also, based on the 4.61 Fibonacci number for the first wave, the coin has a target of $ 26,000, which is the same as the target from the previous section.
Summing up, it can be noted that the BTC price is likely to rise to $ 26,000. A short-term correction at $ 21,500 is possible, after which a new upward movement will begin.