BTC: an important indicator has broken the 721-day trend line – Cryptonium News

BTC: an important indicator has broken the 721-day trend line

Bitcoin (BTC) has bullishly broken through several long-term lower price resistances, confirming the bullish RSI signal.

As shown in the technical analysis, after hitting an all-time high of US$69, 000 in November 2021, Bitcoin passed through several lower resistance levels; in October 2022, BTC made a bullish breakout in this area, and by the following month it was solid as support (green icon) It did so. The kino was then reinforced. Last week it formed a bullish candlestick. If the rise continues, horizontal resistance will act at $24, 300 and the short-term Fibo level will be at $35, 780.

Much more fascinating than the current BTC price dynamics, however, is what is happening with the RSI.
This indicator, too, has been falling since early 2021 as resistance declines. The divergence of this factor initiated the overall decline in the current bear market. However, since July 2022, the index has shown a bullish divergence signal (green line).

Last week, there was a bullish candlestick that allowed the RSI to break through part of the 721-day bearish divergence. Additionally, this breakout supported the bullish divergence.
Thus, the weekly timeframe is very bullish; only one week below US$17, 000 would be bearish. Cannot read all totals.

BTC in 2023: Relief Rally or Another Bullish Move

There are three plausible wave scenarios for Bitcoin; all three promise short-term increases in value.
In the more likely scenario, BTC completes a five-wave bearish structure, giving it the first share of a long-term adjustment.

Prices have begun to rise A-B-C (black). This could end near the Fibo 0.5 retracement in the $42, 150 region of the mean. Then wait for a new resignation.
For example, the lengths of all waves appear to be proportional to buddies, and wave 4 is gaining a triangular shape (white), so we believe this monitoring is more likely.
If BTC falls $15, 558, this scenario is postponed, indicating a possible bearish price change in value.

According to the second scenario, the correction is already complete. In this case, bitcoin has formed a comprehensive W-X-Y-X-Z structure and initiated another bullish move that could take its value to all-time highs. This means that the bazaar has bottomed.

However, there are doubts about the Z wave, which is considered a very short wave compared to the W and Y waves. Anyway, the logarithmic graph does not show this difficulty. This review is further delayed by the $15, 558 breakdown.

The last scenario means that BTC is still in its fourth wave. A bullish target is possible, and the top of this wave could be in the region of the August 2022 high near $25, 000.

The problem with this monitoring is that the fourth wave is too long (more than three waves) compared to the second wave. This is very unusual (white).

The Bitcoin forecast for 2023 is not considered bullish only in this third scenario. Cannot read all totals.

Conclusion: bullish opportunities prevail.

Thus, the price dynamics of BTC look bullish thanks to the weekly RSI (bullish divergence and bearish trend breakout). The results of the wave analysis suggest three possible scenarios, all of them promising a Bitcoin rally, but only in the short term; a drawdown below US$15, 558 neutralizes the bullish watch.

Cryptonium Editors