Bitcoin Breaks Out Towards $51,200 Resistance
BeInCrypto
Published Sep 02, 2021 09:50
Updated Sep 02, 2021 10:40
Bitcoin (BTC) Breaks Out Towards $51,200 Resistance
Bitcoin broke out from a descending parallel channel on Sept 1 and is attempting to move above the $51,200 horizontal resistance area.
Due to mixed readings from technical indicators, we cannot accurately determine if BTC will be successful in breaking out the first time. However, an eventual breakout is likely.
h3 Short-term breakout/h3BTC had been trading inside a descending parallel channel since Aug 29. Such channels usually contain corrective structures.
After sweeping the lows on Sept 1, BTC broke out later during the day. So far, it has reached a high of $50,450.
Both the MACD and RSI are bullish, supporting the validity of the breakout.
h3 Long-term resistance/h3Despite the short-term breakout, BTC is still trading below the $51,200 crucial resistance area. This is both a horizontal resistance area and the 0.618 Fib retracement resistance level.
Technical indicators in the daily time frame are still bearish. The MACD has no strength left and is almost negative. Similarly, the RSI has generated some bearish divergence.
However, a hidden bullish divergence is also developing (yellow), which is normally a strong sign of trend continuation.
Due to the mixed readings, a breakout or rejection will be required to determine the direction of the future trend.
h3 Wave count/h3The most likely wave count suggests that BTC is in wave four of a bullish impulse.
Because the breakout looks like a three-wave corrective structure, the most likely scenario would indicate that BTC will complete another slight drop before eventually moving upwards.
While the target for the top of wave five depends on the current bottom, a preliminary level would be between $57,700-$60,500.
Continue reading on BeInCrypto
Get The App
Written By: BeInCrypto
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.