According to Technical analysts, the short-term downtrend of Bitcoin is ending soon. Technical analysts say that the downtrend is entering a corrective phase. This corrective pattern when complete will usher in a bull pattern for the digital asset that had struggled for over a month in a stifled range.
Rebound Is Happening
Technical analysts published their comments after examining the Bitcoin for 24 hours, 6 hours and over 10 days. Technical analysts examine the daily chart where BTC clearly rebounded. The price recovery shows the digital asset leaving a plummeting resistance line. This pattern had been formed since the tenth of November.
Technical analysts traced the historical pattern of the price saying a bullish divergence predicated the present bounce. Relative Strength Index and Moving Average Convergence and Divergence show that Bitcoin had moved away from its earlier bullish price action. However, technical analysts are happy that the bullish divergence of Bitcoin will usher in several bullish reversals. In other words, the present chart for Bitcoin shows the price dip is not associated with a decrease, nor was the price plunge caused by a dip in buying momentum.
This clearly means that people are buying the digital asset and have been transacting the cryptocurrency. Technical analysts say RSI is going above the 50 mark, another positive indication of a price rally. MACD markers show seven subsequent higher momentum bars, which is a clear sign for a potential bull run.
Technical analyst says the next breakout will test the next resistance section. The area is fifty-five thousand and fifty-eight thousand range. These figures were supported by the Fibonacci retracement levels of 0.5-0.618 respectively.
6-hour Price Chart
Technical analysts evaluated a six-hour price chart of Bitcoin. They found that the chart goes in line with the present uptrend of the cryptocurrency. In November, Bitcoin descended into a parallel channel and has remained there ever since. From all analytical indications, analysts think the channels will correct Bitcoin, driving the digital asset forward. Investors and the Bitcoin community are happy that the correction will result in a promising breakout for the cryptocurrency.
The chart shows Bitcoin enjoying an upward push. This uptrend resulted from a major bullish divergence from Relative Strength Index and MACD. While the 24-hour chart for Bitcoin indicates a likely divergence, the six-hour chart shows this significantly. Bitcoin is gradually moving towards the fifty-five thousand and fifty-eight thousand resistance point.
BTC/Tether USD chart Source: TradingView.com
Wave Count Analysis
Analysts evaluated BTC wave count over 10 days and found out that the digital asset completed a corrective structure that they term “complex.” The structure presently sits in a Y wave, which means it is moving to a predetermined resistance point.
Analysts believe Bitcoin will break past $55,513. They base their prediction on a sophisticated wave count ratio. They think the digital asset can maintain a 1:1 ratio for W:Y waves. Once this happens, the digital asset enters a remarkable bull season, which signals good times for Bitcoin investors and the ever-supportive community.