The Bitcoin Price Hits New Yearly High
The price of Bitcoin (BTC) reached a new yearly high of $44,490 on December 5. Although the price made it above a critical long-term resistance area, it has not yet closed above it.
Bitcoin Reaches Long-Term Resistance
Looking at the weekly chart, the Bitcoin price has been increasing rapidly since mid-October, forming several bullish weekly candlesticks. This week, it reached a new yearly high of $44,490 within a critical horizontal and Fib resistance area.
Rising RSI Indicates Bullish Momentum
Market traders often use the Relative Strength Index (RSI) as a momentum indicator to identify overbought or oversold conditions. Readings above 50 and an upward trend indicate that bulls have an advantage. The weekly RSI for Bitcoin is currently above 50 and increasing, with a reading of 80 last seen in November 2020 before the previous all-time high.
What Do Traders Say?
Cryptocurrency traders and analysts have differing opinions on the future trend of BTC. Bluntz Capital is bullish based on its Elliott Wave count, while Rekt Capital notes differences in price movement compared to previous halvings. Legal Analyst and Hedge Fund Manager James Koutoulas sees similarities to the 2017 bull market due to factors such as weak hands capitulating and impending approval of a BTC ETF.
BTC Price Prediction: Can Rally Reach $50,000?
According to Elliott Wave theory, the BTC price is nearing the top of wave three in a five-wave upward movement. The most likely target for the top of wave three is $47,600, followed by a corrective wave four. However, a close below the $43,000 level could indicate the start of a correction, potentially leading to a 12% drop to the $38,000 support.
Hot Take: Bitcoin Continues its Bull Run
The Bitcoin price has reached a new yearly high and is currently facing a critical resistance area. With an increasing RSI and bullish sentiment among some traders, it’s clear that Bitcoin’s bull run is not over yet. However, caution should be exercised as corrections are always possible in volatile markets. Keep an eye on key levels and monitor market indicators for potential shifts in momentum. Overall, the outlook for Bitcoin remains positive, but it’s important to stay informed and make well-informed trading decisions.
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