A bullish wave – The Bitcoin (BTC) price tries to recover the $21,000, as the markets try to determine if a bullish continuation is possible. This trader and trading firm only foresees a strong bearish correction, after the cryptocurrency rises well above current levels.
$21,000 Bitcoin Price Battle
After losing $21,000 the day before, the price of Bitcoin rises to $21,126 on Bitfinex today, January 19, 2023. Cryptocurrency is trading at $21,109 at the time of writing this article. Its price is currently registering a daily gain of 2.08%.
In the very short term, the 5h price chart of Bitcoin shows that the cryptocurrency is currently crossing the Tenkan-sen and the Kijun Senwhich are approaching each other, around $21,000 (blue circle).
Can Bitcoin then sustainably return above $21,000 and thus revive hopes of a bullish continuation? While Bitcoin was trading at $20,972, the analyst Matthew Hyland pointed to resistance in the very short term.
He shared a chart that parallels the 4-hour price of the cryptocurrency, and the RSI over the period that is about to break. encounter a downtrend line. The chart also shows a potential upcoming crossover of the MACD with the signal line.
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Bullish continuity before the final correction?
the trader Rekt Capital attempted to issue a forecast based on the April 2019 bullish breakout. If the breakout current resembled that of about 2 years ago, the cryptocurrency could then continue its rise, well above current levels.
The strong correction would only start after several months, with a retest of the levels around the $17,000 in 2024. Such a retracement would be similar to that of March 2020.
Rekt Capital is not the only one to issue such forecasts, with a bullish continuity at first, before a sharp correction. In its January 19 newsletter, the trading company QCP Capital indicated that the current rise is wave 4, in his analysis of the cryptocurrency price over the long term using the Elliott waves.
QCP Capital points out that “this rebound, from the lows of November 2022, is only a wave 4 correction”. The company believes that Bitcoin could rise to around $30,000before the markets are treated to the “last wave 5” which would then see a massive sell-off.
In a chart from December 2022, QCP Capital showed that the price of Bitcoin could fall below last year’s lows during this wave 5.
Could the long ascent that began this year be a false start for the price of Bitcoin? The outcome of the $21,000 battle and the magnitude of the ensuing movements could provide more precise ideas on the probability of a long bullish continuation or a return to $20,000 in the very short term.
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