Briefly–
- Bitcoin formed a bullish engulfing candle on 19 April.
- The crypto trades beyond an ascending support level.
- Resistance exists in the $43,380 – $44,510 range.
Bitcoin shows a massive bullish trend reversal signal after a substantial increase on 18 April.
Bitcoin touched the $38,536 local low on 18 April. However, the crypto rebounded and formed a bullish engulfing candle. Moreover, the setup exhibited a long wick, and market players consider this a buying momentum signal.
Meanwhile, the pattern resembles the candles o 24 January and 24 February. Both instances saw substantial price surges accompanying the candlestick setups. Furthermore, the three formations saw volumes higher than averages.
Near-Term Bitcoin Bounce
According to the daily price chart, BTC has been moving beyond an ascending foothold line since 24 January. The crypto has validated the line several times so far. The mentioned wick lows initially had Bitcoin beneath the line, though the crypto reclaimed the level within no time.
Technical indicators remain decisively bearish regardless of the somewhat bullish action by BTC price. The Relative Strength index decreased on 2 April, breaching an ascending foothold to hover beneath 50.
Also, the Moving Average Convergence decreases while inside the negative region. Such readings reveal bearishness for the bellwether crypto.
Meanwhile, the 6hr chart displays some bullishness as the Relative Strength index in that timeframe broke out from a plunging resistance level and formed a bullish divergence with BTC price.
If BTC sustains the ongoing bounce, it will likely reach the nearest resistance, stretching from $43,480 to $44,510. The 0.5 – .618 Fibonacci resistance zone created the hurdle range. Moreover, the immediate resistance matched the descending resistance line that dominated since 28 March.
BTC Wave Count
The wave count shows BTC approaching the base of what seems like wave C. The approximate aim for the move’s bottom sits from $37,000 to $37,250. That means a 1:1 ratio for Wave A & C, which projects the sub-wave one length.
An alternate count indicates a complete wave C. Nevertheless, that will hardly transpire since the waves do not have proportions. However, BTC’s bottom appears close, and long-term wave analysis shows a potential move beyond the $50,000 level in the coming sessions.