Bitcoin consolidates below $24,000 after a bull weekend
- Bitcoin is in a phase of discovering new courses.
- Technical indicators for the hour, day and week are bullish.
- BTC is probably in sub-wave 5 of its wave 3.
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The price of Bitcoin (BTC) has reached a weekly Bitcoin Era bullish close well above its former long-term resistance.
Bitcoin is currently consolidating below $24,000. It is expected to rise above this level once again.
Bitcoin’s long-term movement
During the week of December 14-21, the BTC created a massive bullish candlestick, convincingly crossing the $19,500 zone to reach a high of $24,295. The BTC is now in the process of discovering new courses, no longer having any resistance to go above its current price.
Technical indicators are still bullish, although they do indicate extreme overboughtness in the rally.
The daily chart supports the data from the weekly chart.
The BTC has consistently posted higher highs and created eight successive bullish candlesticks before a slightly bearish close on December 20. That said, the December 21st candlestick appears to be taking a bullish shape and could cover the previous day’s candlestick.
As with the weekly data, the technical indicators do not show the slightest weakness, although the RSI and the MACD are overbought. On the contrary, the stochastic oscillator is not far from forming a bullish cross, which could further strengthen the idea that the trend remains on the rise.
A possible retracement?
When the BTC passed the $24,000 mark, the two-hour chart began to show weakness. The RSI generated a bearish divergence (red line) and the MACD was declining. This seemed to indicate that a decline towards the 0.5 fibonacci retracement level, at $21,785, might take place.
However, the RSI generated a masked bullish divergence (blue line) shortly thereafter, invalidating the earlier bearish divergence. This also suggested that the BTC could climb even higher again. The MACD is rising, supporting this possibility.