Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Bitcoin: False breakout? Or Can It Now Reach $50,000+?

By Dr. Arnout ter Schure CryptocurrencyJan 29, 2021 04:07PM ET
www.investing.com/analysis/bitcoin-false-breakout-or-can-it-now-reach-50000-200557548
Bitcoin: False breakout? Or Can It Now Reach $50,000+?
By Dr. Arnout ter Schure   |  Jan 29, 2021 04:07PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

In my last two articles (see here and here) I have kept you abreast of where Bitcoin (BitfinexUSD) should top and bottom by using the Elliott Wave Principle (EWP) and Technical Analyses (TA). Combined and applied correctly, it is still one of the best ways to analyze and forecast markets, although, it is not falable. The question now is, what is next?

To answer that question, let's first go back to last week, where I found.

"BTC … should bottom soon (next few days) and then rally to new ATHs between, ideally $55-60K, in the subsequent weeks. The bulls will be in trouble on a weekly close below $28.4K as that can target the next lower support zone at $23-22K"

So far so good, BTC bottomed on Wednesday at $29,236, which fits very well with last week's insight that "at around $29,700 is the preferred target zone" and "$29K+/-1K as a more likely support zone for the wave-iv." Besides, it appears to have completed a wedge-shaped pattern, which can be called a bull flag. Price always moves powerfully out of such patterns, like today. Thus, as long as this week's low holds, we should expect BTC to start reaching for $55-65K for (red) intermediate-v of (black) major-3. See the upper right corner of the daily chart below.

Figure 1. Daily Bitcoin candlestick chart, with detailed EWP count and technical indicators:

BTC/USD Daily.
BTC/USD Daily.

For those of you who like a bit more detail and lower resolution to allow quicker trading, the hourly chart below shows my micro-EWP count since the ATH was struck early-December last year. From a technical analyses' perspective, there was a nice positive divergence building on the hourly MACD (dotted green arrow). The price has broken above the blue downtrend lines (small, green arrows). Thus, so far, the breakout is technically sound. Besides, from an EWP perspective, BTC completed five (grey) waves down from the $40K bounce high and reached almost the ideal (green) c=a, (orange) 5=1, and (grey) v=i targets. But in bull markets, downside disappoints and upside surprises, though $29,236 vs. $28,500 +/-500 and is still well within the margin of analytical error.

Figure 2. Hourly Bitcoin candlestick chart, with detailed EWP count and technical indicators:

BTC/USD Hourly Chart.
BTC/USD Hourly Chart.

Bottom line: If this week's low holds, BTC should be on its way to $55-65K. If this week's low is broken, then the current correction is becoming more complex, and the next lower support zone at $23-22,000 should then be expected before the next rally starts.

Bitcoin: False breakout? Or Can It Now Reach $50,000+?
 

Related Articles

Bitcoin: False breakout? Or Can It Now Reach $50,000+?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (9)
Johnny Crash
Johnny Crash Jan 30, 2021 10:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Elon Musk is a false prophet
The Chad Bull
The Chad Bull Jan 30, 2021 10:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Get in SLV on Monday it is the next GME The banks and markwt manipulators are about to get burned all the redditors are sending SLV to the moon
Remington Mahan
Remington Mahan Jan 30, 2021 10:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
bit sv. or SLV silvr?
PHEARLESS PHARAOH
PHEARLESS PHARAOH Jan 30, 2021 12:39AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Im not a big elliot wave fan... i prefer simple bb’s and macd, but i read your last post and followed the action. You were on the money, so im becoming an EW fan
The Truth
The Truth Jan 30, 2021 12:17AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
False breakout 100% Robinhood banned trading of doge coin as well. Even though it’s decentralized they still have control of it. They give our trading data to companies who use AI to determine our habits. I have always felt like the app works against me. Now I know it.
Trade atron
Trade atron Jan 29, 2021 11:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Great analysis
Art Fire
Art Fire Jan 29, 2021 10:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It jumped because the theory robinhood capped average people from free market to help out their system buddies, highlighting how a decentralized currency could play an unquestionable neutral role
Mark Henline
Mark Henline Jan 29, 2021 10:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
yeah. in a bad way not a good one..
Art Fire
Art Fire Jan 29, 2021 10:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Mark Henline agreed. Robinhood did a lot of damage by not managing that situation better. All they had to do was make their decisions the night before, not wait until the 11th hour of the game.
Wes Side
Wes Side Jan 29, 2021 6:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Lol stop worrying about trying to sound smarter than the other “Analyst”. Plain and simple.... bitcoin needed to retest main bullish trendline around 38650 before dropping again... all you guys need to say
Eric Erlandson
Eric Erlandson Jan 29, 2021 6:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Maybe keep your rude opinions to yourself
Wes Side
Wes Side Jan 29, 2021 6:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Eric Erlandson or maybe i can explain it in simple terms for people who cant decipher what he posted...
Mehdi Captain Music
Mehdi Captain Music Jan 29, 2021 5:22PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Not now we have to ask Elon Musk first.
Siyam Ahmed
Siyam Ahmed Jan 29, 2021 4:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Best
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email