Bitcoin (BTC) Consolidates After All-Time High Breakout
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The Bitcoin (BTC) price consolidated on Feb. 9 after breaking out to a new all-time high the day prior.
While the possibility of a short-term drop remains, Bitcoin is expected to continue increasing in the near future.
Current Bitcoin Movement
After breaking out amid a massive bullish candlestick on Feb. 8, BTC consolidated the next day, creating a Doji candlestick in the process. This is normally a sign of indecision.
Despite this, technical indicators are decisively bullish. The RSI has crossed above 70, the MACD is moving higher, and the Stochastic oscillator has just made a bullish cross (green arrow).
The main support area is found at $41,300.
The two-hour chart shows that BTC is following an ascending support line, which is currently near $42,000.
The most recent portion of the movement has not yet retraced. If it does, there is strong support at $42,711. Technical indicators are slightly bearish, suggesting that such a drop could potentially transpire.
Nevertheless, the longer-term trend is clearly bullish, suggesting that even if a short-term drop occurs, BTC will eventually keep moving higher.
BTC Wave Count
The short-term wave count suggests that BTC is in wave three (orange) of a bullish impulse that began on Jan. 28.
The sub-wave count is shown in black and appears to indicate that BTC is in sub-wave 4.
A decrease below the sub-wave one high at $41,025 would invalidate this particular wave count.
The longer-term count (white) indicates that BTC is in wave five of a bullish impulse that began in March 2020.
The most likely targets for the top of the move are found between $50,300-$52,000 and $63,600-$66,000. These target ranges were found using a Fib projection and external retracement respectively.
Due to the shape of the current movement, the higher target range seems more likely.
Conclusion
Bitcoin is in a long-term bullish trend that is expected to take it towards $52,000 and possibly $64,000. However, a short-term drop could occur prior to the upward move developing.
For BeInCrypto’s previous Bitcoin (BTC) analysis, click here
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