☝️ What to Expect Next After BTC/USD Break Above $50k ☝️

3 min read

Dear traders,

Bitcoin (BTC/USD) has managed to break above the psychologically round level of $50k. Can the cryptocurrency challenge the previous high again?

Let’s review the long-term charts to analyse the remainder of the year 2021. Will the 2021 bull run outpace the 2017 bull run?

Price Charts and Technical Analysis

The BTC/USD is showing a strong bullish recovery after a deep bearish pullback:

  • Price action has managed to break above the 21 ema zone again.
  • The bullish momentum is expected to challenge the previous top (blue arrow).
  • The previous top is a strong resistance zone and could stop the uptrend.
  • A bearish retracement (orange arrows) could complete an ABC (blue) in wave 4 (pink).
  • A bullish bounce (green arrow) could take place at the support zone (green box).
  • A bull flag pattern (grey arrows) however indicates that the immediate uptrend remains valid. In that case, a wave 4’ finished at the recent low.

On the daily chart, we see that the bullish momentum is strong because price action remains above the 21 ema zone for a long time:

  •  The bullish price swing is either a wave C or 3 (orange).
  • This depends on the price reaction at the resistance zone (red box).
  • A bearish reversal (red arrow) indicates a wave C and more bearish correction.
  • A flag pattern (grey arrows) indicates a wave 3 continuation.

The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter.

Good trading,
Chris Svorcik

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