Posted by On January 3, Bitcoin’s price hit a new all-time high.
Long-term and daily technical indicators remain bullish.
BTC is probably in wave 5 of a longer-term wave 3.
Bitcoin Future hit a new all-time high (ATH) on January 3, this time rising to $ 34,778.
While the trend has yet to show any considerable weakness, BTC has already reached a crucial fibonacci extension level. This would suggest that he is approaching a cap, if he hasn’t already reached it.
Bitcoin’s weekly close
The week of December 28 to January 4, the price of BTC rose significantly, creating a bullish candlestick at the magnitude of 25%. On January 3, BTC then hit a new all-time high at $ 34,778.
Despite its massive rise and the seemingly parabolic rally, there are no clear signs of weaknesses in technical indicators yet. This suggests that the trend is still on the rise.
Likewise, the daily chart is not showing any clear signs of weakness despite the relatively long January 3 top wick, resembling a shooting star candlestick. In addition, it can be seen that the volume has not been particularly high in the past two days.
That said, there is no bearish divergence and both the RSI and MACD are still rising indicating that the price of BTC may continue to rise.
The two hour chart is giving us the first signs of weakness, as the MACD has lost some of its strength, almost falling into negative territory. That said, the RSI has generated considerable hidden bullish divergence. This is normally considered to be a sign of continuity, after which one would expect another upward movement.
That said, there is no structure in place and no clear areas of support or resistance
The wave count suggests that BTC is very close to peaking, or ceiling, if it hasn’t already.
BTC appears to be in wave 5 (blue below) of cyclical wave 3 (white).
The 3.61 fibonacci extension of Cyclic Wave 1 (blank) is $ 35,037 and suggests that the BTC has already reached its peak. The next size Fibonacci resistance zone would be at 4.61, at $ 43,755.
Using the fibonacci extension over the length of waves 1 to 3 (in blue), we get very similar goals of $ 34,187 (already achieved) and $ 43,532.