Bitcoin Bounces Above $ 23,000, Next Target $ 26,000

Bitcoin Bounces Above $ 23,000, Next Target $ 26,000

INSANE $300k Bitcoin Prediction (Still Conservative in 2021)

Contents

Bitcoin Bounces Above $ 23,000, Next Target Is $ 26,000
CONTENT

  • Bitcoin recovers after briefly falling below $ 22,000

  • Technical indicators hint at bullish reversal

  • BTC is either in the fifth wave of the third wave, or has already started the fourth wave

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Bitcoin dropped sharply on December 21. For a short time, the coin dipped below $ 22,000 and tested the low of $ 21,815

In the long term, the bullish trend remains in effect until the technical indicators reverse, which we will discuss below..

Series of recessions

Yesterday BTC plunged from highs above $ 24,000 and tested the $ 21,815 area. A candlestick with long shadows formed on the charts, indicating a high degree of market uncertainty at this stage..

Technical indicators are also giving mixed signals. RSI dropped below 70 (shown with red arrow below) indicating a possible trend reversal.

However, the MACD has not yet formed a bearish signal, and the stochastic is in the process of forming a bullish cross.

BTC TradingView Chart

Potential reversal

The six-hour chart shows that despite the decline, BTC managed to hold above the minor support area around $ 22,300. This support also coincides with the 0.382 Fibonacci retracement level relative to the previous advance.

Bitcoin Bounces Above $ 23,000, Next Target $ 26,000

A candlestick with a long lower shadow formed on the chart, which almost touched the 0.5 Fibonacci retracement at $ 21,686. However, then the price recovered.

The 2-hour chart also paints a neutral picture..

Bitcoin Bounces Above $ 23,000, Next Target $ 26,000

RSI dropped below 50 and did not form a bullish divergence, while MACD is steadily moving down.

BTC TradingView Chart

BTC Wave Analysis

The most likely estimate suggests that BTC is in the fifth wave (black) of the third wave (orange), which is expected to end in the $ 25,871- $ 26,006 range.

In such a scenario, yesterday’s decline is very similar to a pullback in the fourth wave, after which an upward movement is expected before the completion of the fifth sub-wave.

A decline below yesterday’s low at $ 21,864 is likely to trigger an exit from the parallel channel and nullify this scenario.

BTC TradingView Chart

An alternative calculation assumes that the third wave is complete and BTC is correcting within the fourth wave. Even so, we expect the fourth wave to be shallow and fast due to the principle of alternation..

The second wave took twice as long to form as the first wave, while the price retraced to the 0.618 Fibonacci retracement level. Therefore, we expect that the base of the fourth wave will be the area of ​​$ 20,940 (Fibonacci retracement level 0.5).

A fall below $ 19,918 (red line) cancels out this wave count.

BTC TradingView Chart

Which scenario is more likely

30 minute timeframe confirms the likelihood that BTC is in the fourth wave.

The rally from yesterday’s lows created a strong momentum, while possible pullbacks look like a correction.

BTC will gradually move up towards targets in the $ 26,000 area.

Bitcoin Bounces Above $ 23,000, Next Target Is $ 26,000

BTC TradingView Chart

findings

Bitcoin is ready to continue its growth. A drop below $ 21,900 will slow down the recovery and cause further correction to the $ 21,000 area. Here prices will find support and resume growth.

Here you can read the previous technical analysis for BTC.

Disclaimer: Cryptocurrency trading involves a high level of risk and is not suitable for all investors. The opinion expressed in this article does not reflect the position of BeInCrypto.

Disclaimer

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