Bitcoin will start a correction but test $ 26,000 first

Bitcoin will start a correction but test $ 26,000 first

2021 Bitcoin Bull Run will continue without a correction! SD indicator shows btc going to the moon!

Contents

Bitcoin will start a correction but test $ 26,000 first
CONTENT

  • BTC broke the resistance of $ 19,450

  • Technical indicators on all timeframes give bullish signals

  • BTC is likely in the 5th wave of a bullish structure

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Bitcoin has made a bullish breakdown of the $ 19,450 resistance area and updated historical maximum. This is probably the fifth wave of a bullish structure, which may end in the area of ​​the levels indicated further in the analysis..

Breakout to new all-time highs

Yesterday, December 16, the bitcoin (BTC) rate made a bullish breakdown of the $ 19,450 resistance area and moved well above it. The price continues to aggressively move historical highs. At the time of writing, the current record for bitcoin is $ 22,888.

Bitcoin will start a correction but test $ 26,000 first

Technical indicators are giving bullish signals despite the overbought rally. This promises Bitcoin a likely continuation of growth.

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Schedule MTC. Source: TradingView

On the shorter-term 2-hour charts, the BTC rate is moving along the upward support line that the price last tested for strength when the growth rate began to accelerate yesterday.

Bitcoin will start a correction but test $ 26,000 first

Currently, this line also coincides with the Fib levels of 0.5-0.618 of the growth correction, so the market may well test this area within the framework of the natural correction.

However, so far the technical indicators show no signs of weakening. This suggests bitcoin may continue its ascent north.

Schedule MTC. Source: TradingView

Wave analysis

Back on Tuesday, we drew attention to the fact that the most likely level for the completion of the fifth wave, in which Bitcoin is now located (blue color on the chart), could be the area of ​​$ 25,500- $ 26,300.

At the moment, our forecast and target levels remain the same.

Schedule MTC. Source: TradingView

Shorter-term wave analysis looks more uncertain. It looks like BTC is within sub-wave 3 (orange on the chart) of a five sub-wave price structure that could complete the fifth wave (blue).

There are two likely target levels for the completion of sub-wave 3. These are $ 23,629 and $ 25,819. After that, BTC may decline slightly and, possibly, test the strength of the channel, the bullish breakout of which the market made earlier. Further, the price can make another final spurt to the north to complete wave 5.

A drawdown below the high of wave 1 at $ 19,918 will neutralize such a scenario.

Schedule MTC. Source: TradingView

On the shorter 2-hour chart, additional sub-wave analysis (black) of sub-wave 3 can be done. The results suggest that the BTC rate may trigger another upward wave before completing the formation of sub-wave 3. This makes the $ 25,819 level more likely to target. the price can start a significant rollback from it.

Schedule MTC. Source: TradingView

Conclusion

Thus, it is expected that the bitcoin rate will continue to rise until it reaches at least the $ 26,000 area – and, possibly, it will move even higher..

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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