The Bitcoin Price Roller-Coaster
The price of Bitcoin (BTC) has had a volatile week, starting with a sharp decrease but followed by a bounce. It’s uncertain whether BTC will close its ninth consecutive bullish candlestick or if the positive trend will break.
Can Bitcoin Close Above Long-Term Resistance?
Technical analysis on the weekly time frame shows that the BTC price has been increasing rapidly since October. This led to a new yearly high of $44,700 last week, surpassing a key Fibonacci and horizontal resistance level.
This week, Bitcoin experienced a fall but has since recovered most of its losses. Whether this week’s candlestick will be bullish or bearish remains to be seen.
What Are the Analysts Saying?
Cryptocurrency traders and analysts are optimistic about the short-term BTC trend. Some analysts point to a short-term triple-bottom pattern as a reason for the current upward movement. Others present two scenarios for the future price: either it continues to rise before experiencing a retracement, or it has already topped out and will start heading lower before another leg up.
Another analyst suggests that based on wave count, Bitcoin is likely to see another increase toward a new yearly high.
BTC Price Prediction: What’s the Direction of the Next Move?
According to Elliott Wave theory, Bitcoin’s price is approaching the peak of wave three within a five-wave upward movement. Wave three has extended, and the expected target for its top is $47,600. This indicates an 11% increase from the current price.
However, there is also a bearish divergence in the RSI, suggesting that the upward movement may be coming to an end. If Bitcoin closes below the breakout level at $38,000, it could initiate a corrective wave four and potentially decline by 22% to reach the nearest support at $33,000.
Hot Take: Bitcoin’s Price Remains Volatile
The price of Bitcoin has experienced significant fluctuations this week, with both bullish and bearish movements. Technical analysis and analyst opinions provide insights into the potential direction of BTC’s price in the short term.
While some analysts are optimistic about further upward movement, others caution that a correction may be on the horizon. As a crypto reader, it’s important to stay informed and consider multiple perspectives when making investment decisions in the volatile cryptocurrency market.
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