The Bitcoin (BTC) price bounced at the $47,500 support area on March 3 and is currently making an attempt at moving above the $50,650-$52,450 resistance area.
Bitcoin is expected to eventually be successful in reclaiming this level and continue moving upwards.
Bitcoin in Recovery
After bouncing on March 1, BTC decreased slightly the next day. It created a small bearish candlestick in what looks like a regular retracement in response to the previous increase.
Similar to yesterday, the RSI is bullish. It bounced at the 50-line, but the MACD and the Stochastic oscillator have yet to show any bullish reversal signs.
Short-Term Movement
The six-hour chart shows that BTC is approaching the main resistance area found at $50,650-$52,450. The area is created by the 0.5-0.618 Fib retracement levels measuring from the most recent downward movement..
A breakout and validation of this level as support would likely confirm that the trend is bullish.
The MACD is increasing and has nearly crossed into positive territory. The RSI has also moved above 50, supporting the possibility of a breakout.
The two-hour chart shows that BTC has flipped the $47,500 area as support, and is currently in the process of breaking out from a short-term descending resistance line. This is a movement that could return it to the previously outlined resistance area.
Wave Count
The increase beginning on March 1 (highlighted in green) looks impulsive, indicative of it being the beginning of a bullish impulse.
Furthermore, the resulting decrease was very small, only reaching the 0.382 Fib retracement level. This is a common sign of strength.
Therefore, it’s likely that this is the beginning of a bullish impulse which could take BTC to a new all-time high.
For the longer-term wave count, click here.
Conclusion
Bitcoin is expected to move towards the $50,650-$52,450 area and potentially break out.
