Bitcoin (BTC) made another unsuccessful attempt at moving above the $45,000 resistance area on Feb 16 but technical indicators suggest that it’s gearing up for another short-term increase.
Bitcoin increased considerably on Feb 15, reaching a close of $44,544 in the process (red icon). The high was made inside the $44,300 horizontal resistance area.
While the price failed to break out above this level, it’s worth mentioning that yesterday’s close was the highest since the entire upward move began, even though BTC reached a wick high of $45,821 on Feb 10. The fact that buyers managed to sustain the price and close at this level is a bullish development.
A breakout above this resistance would be likely to cause the price to accelerate rapidly.
Future BTC movement
A zoomed-out view shows that the next resistance area is found at $51,100. This is the 0.5 Fib retracement resistance level and also a horizontal resistance area. If BTC manages to break out from the current area, it would be expected to reach this level.
Despite the potential bearish divergence developing in the RSI (green line), technical indicators are still bullish. The RSI is above 50 and the MACD is nearly positive. In addition to this, the latter created a higher momentum bar, putting a stop to the three-day decrease in momentum.
Wave count analysis
The wave count suggests that BTC has now begun the fifth and final wave of an upward move (red).
The most likely target for the top is found between $47,625 and $47,912. This range is the length of wave one (red) and an external retracement on wave four (black). Furthermore, it coincides with the midline of a parallel ascending channel (white), created by connecting the tops and bottoms of waves one and three.
The sub-wave count also suggests that BTC will soon begin the fifth and final sub-wave (black). This sub-wave has to extend in order for the price to reach the proposed target.
Considering that BTC is also in wave five, sub-wave five is the most likely to extend.
BeInCrypto’s previous Bitcoin (BTC) analysis, click here
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