Business, Crypto Forcast

Bitcoin (BTC) Forms A Bullish Engulfing Candlestick On A Weekly Basis.

BTC surged significantly over the week of December 19-26, hitting a peak of $50,775. In the weekly time frame, this resulted in a bullish enveloping candlestick. This is a candlestick pattern in which the whole prior weekly fall is offset within the present weekly rising.

BTC rose by 49 per cent and 40 per cent the last two times this happened (as shown in the chart below).

Notwithstanding this uptick, technical indications continue to show a mixed picture.

The MACD, which is calculated using short and long-term moving averages (MA), is steadily dropping. This indicates that the short-term MA is slowing in comparison to the long-term average. Nevertheless, it remains positive, suggesting that the short-term MA continues to move quicker. The RSI, a momentum indicator, is just around the 50-point mark. This indicates a neutral trend since numbers over 50 are regarded bullish while those under 50 are regarded as bearish.

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BTC/USD 1 DAY PRICE CHART: SOURCE – COINMARKETCAP.COM

Nevertheless, the signal has produced a concealed bullish split, which is a strong indication of trend continuance.

Continuing eruptive

The daily chart shows that BTC has broken over a falling resistance line that has been in the position since the all-time high on November 8th. This indicated that the correction was over.

Technical indications look to be optimistic as well.

The MACD histogram displays 13 rising momentum bars in a row and is virtually positive. Furthermore, the RSI is on the verge of rising over 50. (Green icons). Both of these are indicators of a bullish trend.

As a result, when compared to the weekly chart, the daily time period gives a more plainly positive perspective.

The 0.5-0.618 Fib retracement resistance levels provide the nearest resistance region, which is situated between $55,470 and $58,640.

From the bottom on December 4, BTC may have been trading within a rising parallel channel, according to the six-hour chart. It is now trading at the channel’s midpoint.

The channel’s resistance line is approaching to the 0.5 Fib level at $55,500.

Bitcoin wave count

According to the wave count, BTC is in the Y wave of a W-X-Y corrective structure (pink). If waves W and Y have a 1:1 ratio, BTC might reach a high of $55,450, which would be close to the previously predicted resistance zone. This whole motion would most likely finish a longer-term B wave (black).

If BTC moves above this level, it will indicate that the long-term trend is positive and that the present upward surge is not just a part of a larger correction.

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