Bitcoin rallied to highs over $ 18,000. What’s next?

CONTENT

  • BTC is moving along the line of parabolic upward support.

  • Long-term resistance is at $ 19.650..

  • Support marked at $ 16,750 and $ 15,500.

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Bitcoin soared to a high of $ 18,476, from which it rebounded sharply. It is not yet clear if BTC has reached a top, but a pullback should be expected soon.

Parabolic break above $ 18,000

The bitcoin (BTC) rate staged an aggressive rally the day before, closing trading at around $ 17,680. Today the bulls resumed their growth and moved the maximum by $ 18,476..

Bitcoin is moving along the line of parabolic upward support, which remains unbreakable for now.

The RSI is giving signals of bearish divergence, but the MACD indicator has reversed and is growing, and the Stochastic Oscillator has not formed a bearish crossover.

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Schedule BTC. Source: TradingView

On the weekly chart, the BTC rate confidently broke above the Fibo level 0.854 of the correction of the previous decline.

The next area of ​​important resistance lies at $ 19,645 (2017 all-time high).

Bitcoin Price Reaches $18,000, But What’s Next?

Schedule BTC. Source: TradingView

Sharp rebound

On the hourly chart for Bitcoin, you can see a massive bearish engulfing candlestick formed after reaching a high of $ 18,476. In the same hour, BTC hit a low of $ 17,214, a 6 +% decline. However, at low levels, the cryptocurrency immediately attracted buyers, and at the time of writing is again trading above $ 18,000.

Hourly MACD is declining while the hourly RSI is signaling bearish divergence, declining from the overbought zone.

Schedule BTC. Source: TradingView

A more bearish picture is emerging on the one-minute chart. After a massive collapse, the price returned to the $ 18,250 area, which previously acted as a support, but has now become resistance. Attempts to look above it turned into a subsequent rollback.

The short-term trend will be considered bearish until the market recovers above this level. Such recovery and growth above $ 18,260 will indicate the willingness of the price to continue to rise..

Schedule BTC. Source: TradingView

What’s next

Short-term wave analysis suggests that the BTC rate has already peaked. We can distinguish five waves (orange) and their sub-waves (blue), indicating the completion of the formation of a long-term bullish impulse structure.

Bitcoin rallied to highs over $ 18,000. What's next?

However, despite this, the high did not reach any important Fibonacci retracement levels. This could be a signal that the market may still form another high..

The area of ​​$ 20,054, located above the historical maximum and the Fibo level 2.61 of the expansion of waves 1-3, can act as a probable top..

In the meantime, any short-term correction could push the price back to a low of $ 15,777 (former resistance turned support and Fibo 0.5 correction of the recent advance).

Schedule BTC. Source: TradingView

However, there is a downside potential in the shorter-term chart. The maximum was noted in the area of ​​two important Fibo levels, so we cannot exclude the possibility of a fall in the area of ​​$ 16,750.

Schedule BTC. Source: TradingView

Conclusion

At the moment, it remains unclear whether the BTC rate has formed a top. At the same time, in the short term, the most likely corrective decline in the direction of support areas of $ 16,750 and, possibly, $ 15,750.

A price rise above $ 18,260 will neutralize this scenario.

You can read the previous Bitcoin forecast here.

Disclaimer: Trading cryptocurrencies carries a high level of risk and is not suitable for all investors. The opinion expressed in this forecast does not reflect the opinion of the editorial staff of BeInCrypto.

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

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Bitcoin rallied to highs over $ 18,000. What's next?
Bitcoin rallied to highs over $ 18,000. What's next?
Bitcoin rallied to highs over $ 18,000. What's next?
Bitcoin rallied to highs over $ 18,000. What's next?

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