The Bitcoin Price Hits New High and Falls Afterward
The Bitcoin (BTC) price recently reached a new yearly high of $44,700 but has since experienced a decrease. This high was above a critical long-term resistance level, but the subsequent decrease brought the price below it.
Bitcoin Deviates Above Long-Term Resistance
Looking at the weekly chart for Bitcoin, there has been a rapid increase in price since mid-October, marked by eight consecutive bullish weekly candlesticks. Last week, Bitcoin reached a new yearly high above a critical horizontal and Fibonacci resistance level.
However, despite closing above this area, the BTC price has decreased significantly this week, potentially making the previous breakout a deviation.
Traders Analyze the BTC Trend
Cryptocurrency traders and analysts are generally optimistic about the short-term BTC trend. Credible Crypto points out that open interest has been wiped out in a deleveraging event, suggesting spot market buying and aggressive accumulation of discounts.
IncomeSharks believes that the price has formed a short-term range and predicts an upward movement towards the highs after a deviation below the range low. CryptoChase shares a similar outlook, suggesting that the upward movement will continue after sweeping the lows at $40,000.
BTC Price Prediction: Is Correction on the Horizon?
Technical analysts are using the Elliott Wave theory to identify long-term price patterns and predict trend directions for Bitcoin. The most probable Elliott Wave count suggests that BTC is approaching the top of wave three within a five-wave upward movement. The target for the peak of wave three is $47,600.
However, bearish divergence in the RSI indicates that the upward movement may be reaching its top. If there is a close below the breakout level at $38,000, it could signal the beginning of wave four and potentially lead to a 20% price drop to the nearest support at $33,000.
Hot Take: BTC Price Reaches New High but Faces Correction Risks
The Bitcoin price recently reached a new yearly high above a critical resistance level. However, it has since experienced a decrease, potentially deviating from the previous breakout. Traders are optimistic about the short-term BTC trend, with open interest wiped out and spot market buying taking advantage of discounts. Technical analysts predict that BTC is approaching the top of wave three within an upward movement, but bearish divergence suggests a potential correction. If the breakout level is breached, BTC could face a 20% price drop to the nearest support. The overall outlook for BTC remains uncertain as it navigates through resistance levels and potential corrections.
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