- Bitcoin is approaching long-term strength at $16,120.
- The price is still moving within an ascending parallel channel.
- The BTC has probably started wave 5 of a bullish momentum.
The price of Bitcoin (BTC) continued its ascent, creating another bullish overlay on November 4th.
The move reversed many bearish divergences, and the price appears to be targeting a long-term resistance zone.
Bitcoin’s continued rise
On November 4th, the BTC price created another bullish Japanese candlestick and resumed its upward movement to a local high of $14,560.
Despite the developing bearish divergence in the RSI, which is in overbought territory, neither the MACD nor the Stochastic Oscillator shows signs of weakness. This tells us that the upward momentum is likely to continue.
The closest resistance zone is near $16,120, which corresponds to the 0.786 fibonacci level of the entire previous downtrend (from the December 2017 peak).
Technical indicators show no clear signs of weakness. The price is then expected to continue to rise in the medium and short term.
Current Movement in the CLC
Despite this ongoing rise, the Bitcoin Storm has still not managed to pass the parallel ascending channel in place since October 28th. If it does manage to pass over the latter, it will likely be a steeply rising movement.
As for the daily and weekly time scales, no clear weaknesses are seen. That said, a rejection by the channel’s resistance line could result in a short-term drop towards the middle of the channel, close to $14,000.
For the wave count, it is likely that the BTC has just completed wave 4 (in orange below) of an impulse started on September 7. If this is correct, then Bitcoin seems to have started wave 5 on November 4.
The most plausible target for the top of wave 5 is between $16,000 and $16,300. This range is obtained by using the fibonacci extensions of waves 1 and 3, and projecting the length of waves 1 to 3 from the bottom of wave 4. This also fits with the long term resistance zone mentioned above.
This scenario would be invalid if the CLC falls below the trough of wave 4 at $13,520. This would not cancel out the entire bullish formation per se, but rather suggest that Wave 4 is not yet over. The target for Wave 5 would remain the same.
In conclusion, although short-term declines are possible, Bitcoin is expected to eventually reach its next resistance zone at $16,000.
Caution: Crypt trading is a high risk business and may not be suitable for all investors. The opinions expressed in this article do not reflect those of BeInCrypto.