Bitcoin (BTC) price recovers the support
After a brief decline on November 16, Bitcoin (BTC) price regained support.
Currently, the price moves above the critical horizontal support area in an isolated pattern. Does it hatch?
Bitcoin is breaking out of long-term resistance
The Bitcoin weekly chart shows that BTC has risen rapidly over the past five weeks. Bitcoin price regained the $31,000 level in early October.
Since 2011, the area has occasionally served as support and resistance, which was a significant development. BTC hit a new yearly high of $37,978 in November.
Market traders use Relative Strength Index (RSI) as a momentum indicator to identify overbought or oversold conditions and decide whether to accumulate or sell the asset.
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A reading above 50 and an upward trend indicates that bulls still have an advantage, while readings below 50 indicate the opposite. RSI is rising and above 50, both positive signs.
Bitcoin Hashrate hit a new all-time high last week. Hashrate is a measure of the computing power used by miners. An upward adjustment usually follows an increase in hash rate in the BTC mining problem.
A report by CryptoQuant cited bullishness in Bitcoin ETFs as the dominant narrative, despite such increases usually followed by downward moves.
Argentina also elected a pro-Bitcoin candidate as its new president, and a recent report indicated that Bitcoin adoption has reached a new high despite rising transaction fees.
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BTC Price Prediction: Is $40,000 the Next Level?
Technical analysts use the Elliott Wave (EW) theory to identify recurring long-term price patterns and investor psychology to help them determine the direction of the trend.
The most predictable EW count suggests that BTC has started a five-wave uptrend (white) in September. In it, wave three is spread.
The sub-wave count (in black) shows that BTC is currently in wave four of this increase. Wave four has taken a triangular shape, most likely a corrective wave.
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If the upward movement of BTC continues, the price may increase by 35% and reach the next horizontal resistance at $50,000. This will be a 35% increase from the current price.
Initially, a high of around $42,800 can be expected before the price corrects and then completes the overall move around $50,000.
Despite this BTC price forecast, a breakout of the triangle would result in a 10% decline to the nearest horizontal support area at $33,500.
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Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.
