Bitcoin (BTC) price hit a new yearly high yesterday but has fallen slightly today.
The price broke out of a long-term horizontal resistance area, the last one before the all-time high.
Bitcoin overcomes resistance
Technical analysis on the weekly time frame shows that BTC price has been rising since the beginning of 2023 and its rate of increase accelerated in October. In January 2024, the price reached a high of $48,970 but was rejected, creating a bearish candle (red symbol). The rejection confirmed horizontal and Fib resistance levels.
However, over the past four weeks, BTC has regained its footing, creating multiple weekly bullish candlesticks and closing above the confluence of resistance levels. Yesterday, BTC price hit a new yearly high of $52,816.
BTC/USDT weekly chart. Source: TradingView
The weekly Relative Strength Index (RSI) is providing a bullish reading. Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions and decide whether to accumulate or sell an asset.
Readings above 50 and an uptrend suggest bulls still have the advantage, while readings below 50 suggest the opposite. The weekly RSI has risen above 70, a sign of an uptrend.
Read more: Where to trade Bitcoin futures
Cryptocurrency traders and analysts on X are positive about the future BTC trend.
XForceGlobal uses Elliott Wave Theory to predict another high in BTC. Technical analysts use Elliott Wave theory to identify recurring long-term price patterns and the investor psychology that helps them determine the direction of a trend.
BTC/USDT hourly chart. Source: X
CryptoMichNL believes there could be a short-term correction, but expects a significant move after that.
Checkmate is bullish due to the huge number of inflows from the ETFs.
“#Bitcoin spot ETFs raised $17,983 BTC on Wednesday, representing a total value of $928 million in orange coins. This is an amazing daily bid, even $GBTC saw an inflow of 1.8k BTC. Keep in mind that this initial wave of demand will slow down at some point, probably soon. But the game has changed.” he tweeted.
Similar thoughts are expressed by well-known on-chain analyst Will Clemente, who pointed out the significant percentage of BTC that has not moved in over a year.
“About 70% of Bitcoin supply still hasn’t moved in at least a year, while ETFs are seeing $500 million in daily inflows. “You don’t have to have a PhD in economics to know what will happen next,” believes Clemente.
Finally, JJcycles notes that inflows in the last four working days are more than 2 billion.
Read more: Who will own the most Bitcoins in 2024?
BTC price prediction: $60,000 in circulation?
Like the weekly time frame, the daily time frame also gives a bullish reading based on price action, wave count, and RSI.
The wave count suggests that BTC price started a new uptrend on January 22 and is currently in wave three. This is in line with price action showing a breakout above the $47,000 resistance area.
Finally, the daily RSI has crossed the overbought zone. Last time (green) this resulted in a significant upward movement.
Currently, BTC is trading at Fib resistance at $51,780. If it breaks out, it can rise 7% to the next resistance at $55,325.
BTC/USDT daily chart. Source: TradingView
Despite the bullish BTC price prediction, a rejection of the current resistance could trigger a 10% decline to the next support at $47,000.
Read more: What is a Bitcoin ETF?
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