The bitcoin rate has been strengthening since January 12, consolidating inside a symmetrical triangle above $ 36,000.
BTC is expected to face resistance around $ 37,700. A break above $ 40,112 will demonstrate that the currency is still maintaining bullish momentum rather than correcting.
Bitcoin keeps going north
Course bitcoin (BTC) rebounded on January 11 from the support provided by the 0.382 Fib level at $ 32,124. Since then, the price has been rising. This rally looks erratic and slow and looks more like a correction than a bullish momentum.
Despite the hidden bullish divergence in the RSI, the remaining technical indicators on the daily chart are giving bearish signals. Stochastic Oscillator has formed a bearish crossover, and MACD is almost in the red zone.
If BTC makes a bearish breakout, the next support will meet it at $ 29,080 (Fib 0.5 retracement).
MTC schedule. Source: TradingView
Symmetrical triangle
On the 6-hour chart, the BTC rate has been trading within a symmetrical triangle since January 4. The point of convergence of the resistance and support lines is getting closer, so in the near future the market will have to make an important decision regarding the further direction of the movement.
Strong resistance is seen at $ 37,709 (Fibo 0.618 retracement level, horizontal resistance and a downward triangle resistance line).
The technical indicators on the short-term chart are bullish, but bearish signals on the longer timeframes prevent us from predicting a bullish breakout with confidence.
MTC schedule. Source: TradingView
Wave analysis
The results of the wave analysis suggest that the BTC rate is trading within the complex correction WXY (orange on the chart), in which wave X is represented by a triangle. This is in line with the results of a longer-term analysis, which suggests that BTC is correcting growth that began in September 2020.
A bearish breakout of the triangle could push the market back to the aforementioned 0.5 Fib level at $ 29,000, and possibly to the 0.618 Fibo support at $ 26,000.
Underwave analysis is shown in black on the chart. The absorption of the low of the wave B at $ 33,822 will confirm our assumptions.
Schedule MTC… Source: TradingView
Since there is almost no doubt about the presence of a triangle on the chart, the only other probability remains that this is the fourth wave that will be broken in the north direction, which will push BTC in the direction of $ 50,000.
However, this is at odds with the results of long-term analysis. Until we see the absorption of the high of the wave B at $ 40,112, we will consider this scenario unlikely.
MTC schedule. Source: TradingView
Conclusion
Thus, bitcoin is expected to gradually rise to $ 37,700. A break above $ 40,112 will demonstrate that BTC is still in bullish momentum, while a drop below $ 33,822 will confirm a bearish trend.
You can read the previous Bitcoin forecast here.
Disclaimer: Cryptocurrency trading involves a high level of risk and is not suitable for all investors. The opinion expressed in this forecast does not reflect the opinion of the editorial staff of BeInCrypto.
