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Exclusive Bitcoin (BTC) Breaks Out Towards $51,200 Resistance

1 min
Updated by Kyle Baird
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In Brief

  • Bitcoin has broken out from a descending parallel channel.
  • It is facing resistance at $51,200.
  • BTC is likely in wave four of a bullish impulse.
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Bitcoin (BTC) broke out from a descending parallel channel on Sept 1 and is attempting to move above the $51,200 horizontal resistance area.

Due to mixed readings from technical indicators, we cannot accurately determine if BTC will be successful in breaking out the first time. However, an eventual breakout is likely.

Short-term breakout

BTC had been trading inside a descending parallel channel since Aug 29. Such channels usually contain corrective structures. 

After sweeping the lows on Sept 1, BTC broke out later during the day. So far, it has reached a high of $50,450. 

Both the MACD and RSI are bullish, supporting the validity of the breakout.

Long-term resistance

Despite the short-term breakout, BTC is still trading below the $51,200 crucial resistance area. This is both a horizontal resistance area and the 0.618 Fib retracement resistance level.

Technical indicators in the daily time frame are still bearish. The MACD has no strength left and is almost negative. Similarly, the RSI has generated some bearish divergence. 

However, a hidden bullish divergence is also developing (yellow), which is normally a strong sign of trend continuation.

Due to the mixed readings, a breakout or rejection will be required to determine the direction of the future trend.

Wave count

The most likely wave count suggests that BTC is in wave four of a bullish impulse (orange). 

Because the breakout looks like a three-wave corrective structure, the most likely scenario would indicate that BTC will complete another slight drop before eventually moving upwards. 

While the target for the top of wave five depends on the current bottom, a preliminary level would be between $57,700-$60,500.

BTC Chart By TradingView

For BeInCrypto’s previous Bitcoin (BTC) analysis, click here.

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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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