Bitcoin made bullish breakout and may rally above $ 20,000

Bitcoin made bullish breakout and may rally above $ 20,000

Bitcoin: The Bullish Trend and $20,000 Price Target

Contents

Bitcoin made bullish breakout and may rally above $ 20,000
CONTENT

  • BTC rate is trading within the resistance area at $ 19,400.

  • BTC made a bullish breakout from a short-term symmetrical triangle.

  • BTC likely completed the 4th wave of a bullish structure.

Bitcoin made bullish breakout and may rally above $ 20,000

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The bitcoin rate has made a bullish breakout of the short-term pattern and is now forming support. Further, the price can continue to grow in the direction of the targets highlighted below.

Long Term Double Top?

At the end of the week from December 1 to December 7, the bitcoin (BTC) rate formed a small bullish candle. At the moment, the price managed to renew its historical maximum by $ 19,888 on December 1, after which it rolled back. This candlestick appeared on the chart following the Doji candlestick from the previous week and therefore can be regarded as a sign of strengthening after a period of indecision.

In theory, the chart now shows a potential double top relative to the December 2017 high. However, technical indicators are not showing signs of weakening yet, which could indicate an impending decline.

Bitcoin made bullish breakout and may rally above $ 20,000

A pure breakdown of the current resistance area can push the BTC rate to unprecedented heights, since there is no significant resistance further on the chart.

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MTC schedule. Source: TradingView

Despite this, indicators on the daily chart are giving bearish signals.

The RSI is showing bearish divergence, while the MACD is declining and has almost reached the bearish zone. Meanwhile, the Stochastic Oscillator has formed a bearish crossover and is moving south.

If the decline continues, the nearest support will meet bitcoin only around $ 16,000, and further by $ 14,850 and $ 13,650.

MTC schedule. Source: TradingView

Likely bullish breakout

However, shorter timeframes paint a more optimistic picture. On the 6-hour chart, Bitcoin is now trading within the $ 19,400 resistance area, for the fourth time trying to break above it..

On December 1, the BTC rate already looked higher, but immediately rolled back. Nevertheless, after that, the currency tried to storm this barrier twice more..

RSI and MACD are rising, with the former hovering above 50 and the latter above 0. This supports the market’s chances of a successful bullish break.

MTC schedule. Source: TradingView

On the 2-hour chart, the price has made a bullish breakout of the symmetrical triangle and is now turning its resistance line into support.

A price rise for the entire height of this pattern can send BTC above $ 20,800.

MTC schedule. Source: TradingView

Bitcoin made bullish breakout and may rally above $ 20,000

Wave analysis

The price movement within the triangle and its subsequent bullish breakout gives us reason to assume that this was the 4th wave of a bullish impulse structure (red on the chart) that began to form on November 27th. If our assumptions are correct, it means that BTC has just started the 5th wave..

Fibonacci extension levels confirm this scenario and allow us to set a target in the $ 22,100- $ 22,600 region.

This target level was determined using the following tools:

  • Fibo level 4.61 extension of wave 1
  • Fibo level 3.61 correction of wave 4
  • Wavelength 1-3 projected onto the base of wave 4

MTC schedule. Source: TradingView

Conclusion

Thus, the bitcoin rate is expected to soon break above the $ 19,400 resistance area and continue to rise towards at least $ 20,800, and possibly to $ 22,000..

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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