February 27, 2021

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Bitcoin Falls Just Short of Cracking Mythical $50,000 Level

2 min read

Bitcoin (BTC) continued to increase in the early hours of Feb. 16 and missed the $50,000 level by less than $50.

Bitcoin is expected to break out above $50,000 and continue increasing toward $55,000. Some technical signals present the possibility that BTC could climb to the range of $64,00-$67,000.

 

Bitcoin Stalls but Holds Steady

Bitcoin began to decrease considerably on Feb. 15, initially reaching a low of $45,570. However, it regained its footing shortly after and regained the majority of the losses, managing to close the day at $47,911.

This created a hanging man candlestick, which is commonly considered a sign of weakness in an upward trend.

Nevertheless, BTC began the next day by moving up, reaching a new all-time high of $49,998 (BTC/USDT pair on Binance).

Currently, BTC is trading above the highs of the hanging man, invalidating the potential bearishness stemming from it.

Furthermore, the daily RSI appears to have bounced at the 70-line, which, alongside the increasing Stochastic oscillator and MACD, can be read as a sign of strength.

BTC Daily Movement
BTC Chart By TradingView

Bullish or Bearish

The two-hour chart shows some ambiguity as to the direction of the trend due to conflicting signs between the pattern created and the price action.

BTC seems to be trading inside an ascending wedge, which is normally considered a bearish reversal pattern.

However, the price action inside the pattern is bullish. BTC has reclaimed the $47,800 and $48,900 levels — validating them both as support. Furthermore, it reached the highest two-hour close at $49,624 in the early hours of Feb. 16.

Both the RSI and MACD are increasing. The latter’s histogram has nearly crossed into positive territory — a strong bullish sign.

Therefore, BTC is expected to break out above the ascending wedge and head higher.

BTC Short-Term Movement
BTC Chart By TradingView

BTC Wave Count

The wave count suggests that BTC is in wave five (white) of a bullish impulse that began with the March 2020 lows.

The most likely target for the top of this impulse is found between $63,882-$66,918. This target range was found using a Fib projection (white) on waves 1-3 and an external Fib retracement on wave four (black).

The sub-wave count is shown in orange and suggests that BTC is in sub-wave three.

A decrease below the sub-wave one high at $38,620 (red line) would invalidate this particular wave count.

BTC Wave Count
BTC Chart By TradingView

A closer look at lower time-frames reveals that BTC is also close to beginning minor sub-wave five (black). This sub-wave has a target between $55,000-$56,000.

After this, Bitcoin would be expected to correct a little before resuming its upward movement.

BTC Sub-Wave Count
BTC Chart By TradingView

Conclusion

Bitcoin is expected to successfully break through $50,000 to reach a high near $55,000 before possibly correcting.

For BeInCrypto’s previous Bitcoin (BTC) analysis, click here

The post Bitcoin Falls Just Short of Cracking Mythical $50,000 Level appeared first on BeInCrypto.

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