BTC/USD Bullish Reversal to Test Critical Highs

Bitcoin (BTC/USD) made a critical bullish breakout above the resistance trend line (dotted orange). But a triangle chart pattern remains a factor whether BTC/USD is really in an uptrend or not. What can we expect on the weekly and daily charts?

Price Charts and Technical Analysis

The BTC/USD is testing the broken support zone (dotted orange lines and blue box). A bullish bounce is expected to retest the previous high. A bullish break above the previous top confirms the uptrend and a wave 3 (pink) continuation. A bearish bounce indicates that an ABCDE triangle pattern is more likely to emerge. This triangle pattern only becomes invalid if price breaks below the bottom and 100% Fib.

The current retracement on the daily chart is finding support at the 38.2% Fibonacci retracement level of wave 4 (pink). The 5 wave (pink) pattern is the alternative of the triangle pattern shown on the weekly chart. But price action should stay above the 50% Fib and eventually break above the resistance. A bullish pinbar at the 144 ema is likely to create a bounce to test the resistance trend line soon.

Good trading,

Chris Svorcik

The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter

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