The Bitcoin (BTC) price has risen from an elongated downward resistance line, which confirmed two bullish RRSI readings as it went.
The Bitcoin price has slowed down under the descending resistance line, it hit an all-time peak of $69,000 in the month of Nov. 2021. BTC began to move away from the line in the month of Oct. 2021 and was recognized by a an “support” (green icon) in the next month. In the following month, BTC price has risen from. It has created a massive bullish candlestick this week. If the growth persists, the nearest horizontal resistance is $24,300. The closest Fib resistance is located at $35,780.
However, the price movement isn’t the most exciting thing happening with Bitcoin currently. The title goes to RSI.
The indicator was declining in a downward resistance line from in the year 2021’s beginning. The line’s divergence started the entire downward trend of the bear market currently. From the low of July 2022 the indicator started to produce positive diversification (green red line).
This week, the bullish candlestick caused RSI to break away and break away from its bearish trend line, which lasted 721 days. The RSI was previously not able to keep an established trend line for this long. In addition, the breakout proved the bullish divergence of the indicator.
This means that the technical analysis of the weekly timeframe is clearly bullish. A weekly closing below $17,000 is needed to make it bearish.
Bitcoin Price Prediction For 2023: Relief Rally or New Bull Run?
Three possible Bitcoin Wave counts could be currently in the making. Three of them suggest that an upward trend is anticipated in the near term.
The most likely scenario would be that Bitcoin price has completed a 5-wave downward move that is the first phase of a longer-term correction.
Thus, the price is now accelerating upwards. A-B-C rise (black) that may end up near to the 0.5 Fib retracement point with an average of $42,150. Following this, a further drop could be expected.
The most plausible to be true since all of the waves are in a way disproportionate to one another, and wave 4 took on the form of the shape of a triangle (white).
If prices fall to below $15,558 will be a reversal of this figure, resulting in an overall bearish trend for the future.
The second one signifies that the correction is completed. In this case, the Bitcoin price has completed a complicated W-XY-XZ structure. It is now beginning an upward trend which will eventually lead it to an all-time peak. It is possible that the Bitcoin price is already at its lowest.
The main issue in this number is the fact that Z is the wave that Z is not enough in comparison with W and Y but this is not evident on the graph of logarithmics. The level of invalidation in this case is at $15,558.
The final analysis indicates there is a possibility that Bitcoin price is in the fourth wave. The most likely price target for the highest point for wave four would be around the August 2022 highs , around $25,000.
The problem with this number is the long length of wave four as compared to waves two. Wave four was three times as long as wave two (white) which is not common.
It is also the sole figure that does not offer an upbeat Bitcoin price forecast for 2023.
Conclusion: Bias is Leaning Bullish
In conclusion to conclude, the Bitcoin price movement is bullish because of its weekly RSI readings, and more specifically, the bullish divergence and breaking of the bearish trend line. There are three factors remaining but they all indicate that the upward trend will continue, at the very least for the short-term. If prices fall below $15,558, it will negate this positive BTC cost analysis.