Bitcoin has reached a new high of 49000 and is pulling back. A break above this resistance will open a new strong bullish cycle. Still, we are seeing a terminal phase of the short-term five Elliott upside Waves in the consolidation rising wedge which is not giving us a bullish expression and is also confluences with a 61.8% Fibonacci retracement of the 2021-2023 swing down. A break below 41600 again calls for a bigger pullback to 35000 a key support for the bullish continuation.
The Weekly Bitcoin chart reveals the rising price action wedge, a test of its upside resistance, and an already-mentioned key 41500 support is being tested. A break below this level is required to invalidate the immediate upside extension and will mark the fifth wave short-term finished especially in the case of a break below 40000. For an upside continuation we need to see a breakout above 48000.
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How to trade this?
It is a fact that a strong upside resistance for Q1 2024 is 49000. If we get a confirmed break here we could see a strong upside continuation and new highs. Near-term, short-trade entries have a higher probability of success but for the conservative traders upon a break below 41500. Long trade entries are also possible but only on a price action confirmed break above 49000. You can try a short trade here with a stop loss above 46000. For inquiries about account management please write to [email protected].
