Bitcoin (BTC) made a bullish breakout and resumed growth

Bitcoin rebounded on May 19 from the $30,000 support area and has been growing ever since. May 24 BTC made a bullish breakout of the short-term descending resistance line.

At the time of writing, Bitcoin is approaching the first important resistance area at $41,200.

BTC resumes rebound

Bitcoin (PTS) hit local lows around $30,000 on May 19 and has been rising ever since. On May 23, the market formed an increasing low, and then a bullish absorption candle.

During this time, the currency managed to complete the daily trading at the level of $40,600. The key resistance levels are located at $41,200 and $48,175. They are represented by the Fibonacci levels of 0.382 and 0.618 of the correction of the last decline.

Technical indicators give some bullish signals. So, the MACD formed three rising momentum bars. However, against the background of yesterday’s bearish closing of the candle, the indicator did not signal a bullish reversal.

The RSI index exceeded the 30 mark, having previously signaled a bullish divergence. The stochastic oscillator has not yet formed a bullish intersection, but it has started to grow.

Thus, although the reversal is not confirmed, we can talk about the presence of a number of bullish signs.

Are you a bull on the PTS? Share your opinion in the comments and join the discussion in our Telegram channel!

Chart PTS. A source: TradingView

Short-term dynamics of BTC

The shorter-term 6-hour chart also supports this scenario.

First, it shows that bitcoin made a bullish breakdown of the descending resistance line, and then tested it for strength as support.

Secondly, the RSI and MACD indicators began to show a bullish mood. The first one has exceeded the 50 mark, and the second one is growing.

The significance of the $41,200 area is reinforced by the fact that there is also horizontal resistance in this area.

Chart PTS. A source: TradingView

BTC Wave Analysis

The results of the wave analysis suggest that the market decline was a correction price structure A-B-C with the ratio of waves A:C as 1: 1.61.

This is probably the first part of the correction in the form of a flat or triangle.

Accordingly, we can expect that the subsequent price increase will continue at least to the level of resistance of the Fibo 0.618 correction at $51,606 or, possibly, to the level of the Fibo 0.854 at $59,862.

The absorption of the wave minimum at $47,004 (red line) will confirm that we are not dealing with a bearish impulse structure.

PTS schedule. Source: TradingView

Read the previous one bitcoin forecast and other cryptocurrencies can here.


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