Bitcoin interrupts protracted phase of consolidation and rushes north

Bitcoin interrupts protracted phase of consolidation and rushes north

Ripple/XRP-SBI,BIS-New Developments Pymnts/Digitalization,Christine Lagarde CBs Will Never Hold BTC

Contents

Bitcoin interrupts protracted phase of consolidation and rushes north
CONTENT

  • Bitcoin price breaks out of the symmetrical triangle.

  • Strong resistance is noted at $ 11,200.

  • The trend is likely bullish.

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Bitcoin has finally completed a month-long consolidation phase and is now trying to break through the remaining resistance and launch a bullish trend.

Bullish breakout from triangle

The bitcoin (BTC) rate began to rise on October 8, which ultimately led to a bullish breakdown of the symmetrical triangle, inside which the price has been consolidating since September 8.

Bitcoin interrupts protracted phase of consolidation and rushes north

There are no signs of weakening on the short-term charts. RSI and MACD are rising, with none of them signaling bearish divergence.

This underpins the perfect breakout and promises the currency continued growth..

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Bitcoin interrupts protracted phase of consolidation and rushes north

Schedule BTC. A source: TradingView

However, the bulls are still blocked by very strong resistance at $ 11,200..

Previously, this area played the role of support, but on September 19 it turned into resistance. In addition, there is a downward resistance line built from the high of August 17.

As with the 2-hour chart, the 6-hour timeframe does not give bearish signals. Both RSI and MACD are rising without showing signs of bearish divergence.

A clear break above $ 11,200 will confirm a bullish trend in the pair.

Schedule BTC. A source: TradingView

A bullish pattern is also seen on the daily chart. MACD indicator has almost entered the green zone. If this happens, it will be the first such precedent since July 25. Stochastic Oscillator has also formed a bullish crossover and is moving up.

Some concerns are raised by possible signals of hidden bearish divergence in the RSI, but they have not yet been confirmed, and they are not enough to neutralize all other bullish signals.

In this regard, we believe that Bitcoin will make another attempt at a bullish break above $ 11,200.

Schedule BTC. A source: TradingView

Wave analysis

After the formation of the aforementioned low on September 9, the BTC rate probably began a bullish impulse move (orange on the chart). As a result, a symmetrical triangle appeared on the chart. If our assumption is correct, then the price is now inside wave 3 of a five-wave structure.

Bitcoin interrupts protracted phase of consolidation and rushes north

The results of sub-wavelength analyzes are shown on the chart in blue and red..

A decrease under $ 10,374 will neutralize this scenario.

Schedule BTC. A source: TradingView

Alternative wave analysis indicates that the bullish breakout of the triangle occurred within wave B of the A-B-C pattern (orange). This analysis assumes that the price will rise in the direction of $ 11,800 – the target level highlighted by the projection of the wavelength A to C and the length of the triangle to the breakout point.

However, in this case, instead of continuing to grow to new annual highs, we can see a decline.

Schedule BTC. A source: TradingView

Thus, the bitcoin rate will make another attempt at a bullish break above $ 11,200 and may continue to rise..

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 opinions expressed in this forecast do not reflect the opinions of the editorial staff of BeInCrypto.

Disclaimer

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