Bitcoin (BTC/USD) has made yet another massive bullish breakout. Tesla announced its purchase of $1.5 billion worth of Bitcoin. This news sent the cryptocurrency soaring again.
The bullish breakout delivered on the trading idea from last trading week. Let’s now discuss what to expect this and next week.
The BTC/USD bullish breakout confirmed the uptrend continuation. The deeper pullbacks from last week indicate a wave 1-2 (pink/orange) pattern. The current strong push up is likely an impulsive wave 3 (orange).
But the main target for the short-term is $50,000 psychological round level. Although price action could easily break (green arrow) the smaller triangle pattern (purple lines), there is not much space before hitting that target.
A retracement is expected (orange arrows) after hitting the target. Then a bullish bounce should resume the uptrend again (blue arrow).
On the 1 hour chart, we can see that the impulsive push higher is probably a wave 3 (green) of wave 3 (orange). This means that the current pullback is a wave 4 (green) and the future breakout a wave 5 (green).
After that, a retracement is expected to take place (orange arrows) in wave 4 (orange) back to the support zone around $43-45k. The main targets after the $50k are $55k and $61k.