Bitcoin Finally Breaks Above $60k After Completing Lengthy ABC CorrectionBitcoin (BTC/USD is breaking above the critical $60,000 resistance and previous top. Will the bulls be able to keep control today and this week?
Bitcoin (BTC/USD) is breaking above the critical $60,000 resistance and previous top. Will the bulls be able to keep control today and this week? Or will the breakout turn out to be a false breakout.
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We will review the key patterns for answering these questions. Plus we also analyse the potential support levels and upside targets.
Price Charts and Technical Analysis
The BTC/USD is showing a bullish breakout above the key $60k resistance, finally after weeks of sideways price action:
- The sideways pattern is probably an ABC (orange) correction in wave 4 (grey).
- Price respected the shallow 38.2% Fibonacci retracement level, which is indicating the bulls are still strongly in control/
- The price action prior to the consolidation was bullish and impulsive, indicating an ongoing wave 3 (purple).
- Price action keeps respecting the 21 ema zone, which indicates a strong uptrend.
- Today’s daily candle is critical for the breakout. A strong bullish candle with a close near the high indicates that the bulls remained in control even as price action is reaching the top. A big wick, however, indicates a potential failed break and retracement.
- Any bearish pullback is still expected to find support at the Fibonacci levels. Only a deeper retracement places the uptrend in danger.
On the 4 hour chart, a 4 hour candle has broken above the $60k mark. There are a couple of scenarios that could take place now:
- An immediate bullish continuation could send the price higher right away (blue arrow). Considering the lengthy consolidation zone, this seems the least likely scenario because the breakout could take longer. A candle close above $61k, however, could indicate more upside.
- Some type of pullback is more likely. But as long as the retracement remains shallow (orange arrows), then a bullish breakout and continuation pattern is expected (green arrow).
- A deeper retracement places the uptrend on hold (yellow circle) or invalidates it (red circle).
- The main targets for upside are located at $62.5, $65, $70, and $75 for the moment.
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