Our view is that Bitcoin will form a rising wedge, completing a breakout which is likely to be the last of this medium-term bullish cycle.
In our chart we have different colored lines to clearly delineate our timescales of interest: blue for the short-term, wherein we see a predicted rising wedge, and black for the medium term, which depicts a typical ABC wave.
Markets typically form wedges before the exhaustion of a bullish wave to indicate a shift in momentum is occurring. We see no reason to doubt that this will again occur here; both local resistance and support levels are holding for now, strong evidence in favor. Additionally, the first Fibonacci extension indicates subsequent resistance at 6000, aligning well with what one might have suggested psychologically. Therefore, our overall prediction is that the wedge will break to the upside, followed by a likely rejection at 6000 as resistance sellers dominate.
In our chart we have different colored lines to clearly delineate our timescales of interest: blue for the short-term, wherein we see a predicted rising wedge, and black for the medium term, which depicts a typical ABC wave.
Markets typically form wedges before the exhaustion of a bullish wave to indicate a shift in momentum is occurring. We see no reason to doubt that this will again occur here; both local resistance and support levels are holding for now, strong evidence in favor. Additionally, the first Fibonacci extension indicates subsequent resistance at 6000, aligning well with what one might have suggested psychologically. Therefore, our overall prediction is that the wedge will break to the upside, followed by a likely rejection at 6000 as resistance sellers dominate.