Bitcoin (BTC/USD) has managed to break above the psychologically round leve of $50k. Can the cryptocurrency challenge the previous high again?
The BTC/USD is showing a strong bullish recovery after a deep bearish pullback:
- Price action has managed to break above the 21 ema zone again.
- The bullish momentum is expected to challenge the previous top (blue arrow).
- The previous top is a strong resistance zone and could stop the uptrend.
- A bearish retracement (orange arrows) could complete an ABC (blue) in wave 4 (pink).
- A bullish bounce (green arrow) could take place at the support zone (green box).
- A bull flag pattern (grey arrows) however indicates that the immediate uptrend remains valid. In that case, a wave 4’ finished at the recent low.
On the daily chart, we see that the bullish momentum is strong because price action remains above the 21 ema zone for a long time:
- The bullish price swing is either a wave C or 3 (orange).
- This depends on the price reaction at the resistance zone (red box).
- A bearish reversal (red arrow) indicates a wave C and more bearish correction.
- A flag pattern (grey arrows) indicates a wave 3 continuation.
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