After 2 weeks, the Bitcoin price was finally able to break out of the resistance area at USD 51,200.
The technical indicators are looking increasingly bullish and the Bitcoin price is approaching the resistance area at USD 57,250.
Bitcoin price breaks out
On August 23, 2021, the Bitcoin price peaked at USD 50,500. However, the BTC rate was then rejected at the 0.618 Fib retracement level. That is why the corresponding day candle has the shape of a shooting star candlestick. After the Bitcoin price had consolidated for 9 days, there was an upward movement and the BTC price then broke above the resistance area on September 5th. On September 7, 2021, the price then peaked at USD 52,920.
The technical indicators on the daily chart look bullish. A notable bearish divergence has developed on the RSI. However, the RSI has already risen above the trend line. In addition, the MACD’s histogram bars rose for two days. The next area of resistance is at $ 57,250. There is both a horizontal area of resistance and the 0.786 fib retracement level.
Bitcoin price short term development
The USD 50,500 area is now likely to act as support as it acted as resistance prior to the breakout. On the 6-hour chart, the MACD has broken out of the divergence line. The RSI has risen above 70. This also suggests that the upward movement is gaining momentum.
The Bitcoin price is probably currently in the fifth wave of a bullish impulse (orange). The high point of the fifth wave is likely to be around $ 57,100. There are several Fib levels near this price level:
- 1.61 times the length of the first wave (black)
- The 4.21 fib extension of the first wave (orange)
- The 0.786 Fib Retracement Resistance Level (white)
In the last wave analysis, we also showed a wave count that resulted in a correction of the Bitcoin price. The short-term price development is similar in both cases.
Click here for BeInCrypto’s last BTC analysis
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