Wed. Dec 8th, 2021

Dear traders,

Bitcoin (BTC / USD) is surpassing key and critical resistance levels. The upward momentum is beginning to pick up pace.

Can Bitcoin bulls challenge or break the previous top and ATH (always high)?

Price graphs and technical analysis

The BTC / USD daily chart was on a downward trend with lower lows and lows after the price action completed a pattern of rising wedge reversal charts (purple lines):

  • However, price action respected the Fibonacci retracement support level of 61.8%.
  • A bullish rebound confirms the pattern of wave 4 (pink) after an ABC (blue).
  • The price has managed to exceed the 3 different resistance zones (red lines with dots).
  • The price now rises in an uptrend channel (green lines).
  • The momentum is strong because the price action has remained above the 21 ema highs for over 2 weeks and the 21 ema highs and lows also have a strong angle.
  • The momentum and wave patterns suggest more bullish to test the top (blue arrows).
  • Bull flag patterns (orange arrows) would help confirm bullish prospects.
  • The previous tops have become a support area (green box).

In the 4-hour chart, price action shows upward strength and corrective downward movements. The oxen have total control:

  • The bullish change in prices is probably a 3 (green) wave.
  • A break above -61.8% Fibonacci would help confirm this outlook.
  • There could be a small setback, but price action should respect the support area (green).
  • Any deeper setback could put the current wave view on hold. In this case, a larger and deeper 1-2 wave pattern could occur.
  • With a bullish continuation, the price action should be in wave 3 of wave 3.

The analysis has been done with the indicators and the template of the SWAT method (analysis and negotiation of simple waves). For more daily technical and wave analysis and updates, sign up at our newsletter.

Good negotiation,
Chris Svorcik

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