Bitcoin hits 2020 highs above $ 13,000

Bitcoin hits 2020 highs above $ 13,000

Bitcoin soars above $13,000 — Here’s what’s driving it higher

Contents

Bitcoin hits 2020 highs above $ 13,000
CONTENT

  • Bitcoin broke through the $ 12,050 resistance area.

  • Further resistance is marked at $ 14,000, $ 16,400 and $ 19,500.

  • Bitcoin is likely in the 3rd wave of a bullish impulse structure.

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The bitcoin rate continues its bullish run, forming a massive bullish engulfing candlestick and breaking through the resistance area of ​​$ 12,050.

Despite Potential Short-Term Pullback, Bitcoin Underlying Trend Still Looks Bullish.

Bitcoin absorbed September highs

The bitcoin rate (BTC) continued to rise, forming another massive bullish engulfing candlestick on the chart and breaking through the resistance area of ​​$ 12,050. The price reached a maximum at $ 13,235, after which it rolled back to $ 12,800.

Bitcoin hits 2020 highs above $ 13,000

If BTC starts to decline, it should find support around $ 12,050.

However, technical indicators do not promise any weakening so far. RSI, MACD and Stochastic Oscillator are rising without showing signs of bearish divergence.

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Schedule BTC. Source: TradingView

On the weekly chart, you can see that the price has probably made a bullish breakout of the downtrend resistance line, but has not yet been able to close above this area.

If Bitcoin manages to do this, then resistance levels of $ 14,000 (maximum wick from June 2019), $ 16,400 and then $ 19,500 will come into play.

Schedule BTC. Source: TradingView

Short-term schedule

On the 2-hour chart, the price has formed a shooting star candlestick pattern, which is traditionally considered a bearish reversal signal.

Bitcoin hits 2020 highs above $ 13,000

However, apart from this pattern, there are no other signs that would indicate an impending weakening. RSI is overbought but does not show bearish divergence signals. Similarly, MACD started to decline, but without bearish reversal signals.

In this regard, we admit a correction in BTC in the short term, but do not mark any indication that this will be the end of the bullish trend..

Schedule BTC. Source: TradingView

Wave analysis

It looks like Bitcoin started forming a bullish impulse structure (orange on the chart below) on September 8 and is now inside the 3rd wave. The most likely level of its completion could be the Fibo level 3.61 of wave 1 extension, passing at $ 14 360.

Within the 3rd wave, the price is approaching the top, or has already formed the 3rd sub-wave (blue), which reached the Fibo level 3.61 of the extension of the sub-wave 1.

In addition, a deep correction in wave 2 indicates that wave 4, according to the principle of alternation, should be shallow. It is likely to end near $ 12 125 (Fibo level 0.382, sub-wave 3).

After that, the BTC rate will have to resume growth.

Schedule BTC. Source: TradingView

On the shorter-term chart, you can see that the market has completed sub-wave formation within sub-wave 3 (red and green), as well as an extended sub-wave 5.

Schedule BTC. Source: TradingView

Thus, bitcoin rate forms bullish price structure and intends to continue to rise. Meanwhile, in the short term, a rollback of BTC in the direction of $ 12,100 cannot be ruled out..

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.

Disclaimer

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