Bitcoin (BTC/USD) is Breaking Above the Psychological $50,000 Resistance

• Bitcoin (BTC/USD) is breaking above the psychological $50,000 resistance level. Bullish price action remains dominant and strong – and without a trace of weakness.
• The BTC/USD bullish break above the $50k resistance is also a potential break above the small rising wedge chart pattern. Let’s review the targets and waves
• Support is expected between $40k and $50k after hitting the $57.5k target. The most likely support levels are $47-$50k zone.

How far can the uptrend go? This article provides our best guess based on Elliott Wave, Fibonacci, and price swing patterns.

Price Charts and Technical Analysis

The BTC/USD bullish break above the $50k resistance is also a potential break above the small rising wedge chart pattern. Let’s review the targets and waves:

1. The immediate target could be the -27.2% Fibonacci target at $52.5k.
2. But a break higher towards two -61.8% Fib targets at $57.5k is likely.
3. The Fibonacci targets are based on the bounce at the 50% Fibonacci support zone (blue box) of the wave 4 (purple).
4. Recently the target was hit (green box) and it did create a pause within the uptrend. But not enough to create a deeper pullback.
5. The uptrend is firmly in control with all moving averages aligned and an uptrend channel with a steep angle.
6. The current push up could be completing a wave 3 (pink) followed by another wave 4-5 (pink).
7. The broken $50 resistance could now act as support and a potential bouncing spot.

Once the wave 3-4-5 (pink) is completed, a larger pullback is possible. But price action is likely to find support quickly. Especially when considering the strong uptrend.

Support is expected between $40k and $50k after hitting the $57.5k target. The most likely support levels are $47-$50k zone.

On the 1 hour chart, a bullish breakout is taking place right now. But some smaller pullback (orange arrows) to the broken resistance (green box) and the 21 ema zone is always possible.

At the support, price action could make a bullish bounce to push higher (green arrow) in wave 5 (blue) of a wave 5 (grey).

Good trading,

Chris Svorcik

The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter