On March 28th, the price of the digital currency reached a high above $48,000 and is close to an important resistance level.
Bitcoin has been rising since January 24th and has reached a high of $48,189 on March 28th.
It’s possible that the entire movement was contained inside an ascending parallel channel.
The exact slope of the channel is unknown because of the numerous long wicks.
The closest resistance area is around $51,000. This is a long-term horizontal resistance area. There is a resistance line of the channel.
The indicators are bullish. The RSI is increasing. The RSI has moved above 70 and is a sign of a bullish trend.
Short-term BTC breakout
The six-hour chart shows that the descending resistance line that had been in place since Feb. 10 has been broken out by BTC. The line was already validation as support after three tries.
It is possible that the upward trend will continue without a significant change, because neither the RSI nor the MACD are showing any signs of weakness.
Wave count analysis
According to the most likely wave count, the A-B-C structure has begun wave C. The wave broke from the symmetrical triangle on March 23 and began on March 14.
The white count shows that the BTC is in sub-wave 3 or 4.
Waves A and C would have a 1:1 ratio if it reached a high close to $50,700. This would fall close to the resistance area outlined in the first section, creating a confluence of resistance levels between $50,700-$51,000.
Featured photo source unsplash.com