February 22, 2024

Bitcoin (BTC) is currently making its third attempt to break out of a short-term bearish wedge in order to continue its upward move.

Bitcoin has been falling since hitting a high of $24,669 on July 30. The bearish movement so far has been limited to a descending wedge. A descending wedge is usually considered a bullish pattern, meaning it most often leads to breakouts.

On August 2, the price rebounded to the 0.5 Fib retracement support level at $22,650 and moved higher, also coinciding with a horizontal support area. BTC is now making an attempt to break above the descending resistance line

If BTC breaks out of the wedge, the nearest resistance area will likely reach $23,650. That target is the 0.5 Fib retracement resistance level.

Current support

The six-hour chart shows that BTC has been trading above an ascending support line since June 19, with a more recent bounce from it on July 26 (green icon). This led to the aforementioned high of $24,669 on July 30.

Initially, Bitcoin seemed to have broken out above the $23,750 area, but has since broken below it, making it just a divergence.

Thus, the main horizontal resistance area is now at $23,750, slightly above the Fib support described earlier.

BTC Wave Count Analysis

The most likely wave number indicates that Bitcoin has started wave three of a five-wave uptrend (yellow). Since wave three is usually the largest of the five waves, a significant increase is expected if the reading is correct.

Subwavelength measurement is shown in black. It shows that the price is completing the second sub-wave, after which a similar large sub-wave three is likely to follow.

This seems to be one 1-2/1-2 wave formationbut a decline below the rising support line and the 0.618 Fib retracement support level at $22,230 would invalidate this particular wave number.

For Be[in]Crypto’s previous Bitcoin (BTC) analysis, click here

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