Bitcoin (BTC) Reaches New All-Time High on Pizza Day — Here’s What Comes Next

Key Takeaways

• Bitcoin’s (BTC) price reached a new all-time high today.
• Bitcoin reached its highest ever weekly close last week.
• How long will Bitcoin’s price increase continue?

Bitcoin (BTC) has bounced admirably since April 7, reaching a new all-time high (ATH) of $111,880 on May 22.

Interestingly, BTC reached its all-time high on Bitcoin Pizza Day, the first recorded instance of Bitcoin purchasing a physical good.

On May 22, 2010, programmer Laszlo Hanyecz purchased two pizzas for 10,000 BTC, establishing Bitcoin’s use for everyday purchases.

Is this the start of a parabolic Bitcoin rally, or will the BTC price create a double top pattern and fall, similarly to how it did in 2021? Let’s find out.

Bitcoin Reaches All-Time High

The weekly time frame analysis shows that Bitcoin’s price reached its highest-ever weekly close last week.

Bitcoin’s close confirmed a breakout above the $105,000 horizontal resistance area, the final one before an all-time high.

This week, BTC created another bullish candlestick and reached a new all-time high of $111,880.

Since the price is at a new all-time high, the 1.61 external Fibonacci retracement at $130,810 can provide the next resistance.

While the price action is bullish, technical indicators show some worrying signs.

The Relative Strength Index (RSI) has generated a bearish divergence since March 2024 and is nearing the trend line (orange).

Nevertheless, the divergence has already caused a decline, and the indicator could soon break out from the trend line.

Even though the RSI movement has a positive spin, the Moving Average Convergence/Divergence (MACD) shows no bullish signs.

On the contrary, the indicator’s histogram and signal lines show a bearish divergence in the weekly time frame.

So, the weekly time frame price analysis is unclear, failing to confirm if the breakout will lead to much higher prices.

Vertical Accumulation and Breakout

The shorter-term six-hour time frame offers a more positive Bitcoin price prediction.

BTC had consolidated inside an ascending parallel channel since the first week of May.

While channels often contain corrective structures, the Bitcoin price broke out and reached a new all-time high today.

The breakout from the channel is a highly bullish development, since it suggests a pattern of vertical accumulation, where even the correction created higher lows.

Furthermore, it occurred after the RSI and MACD generated hidden bullish divergences.

So, the short-term BTC price analysis is more bullish. It predicts that the correction has ended and that new highs are likely.

Why is Bitcoin Going Up?

Bitcoin’s bullish count suggests the price is just starting a parabolic upward movement.

According to the count, the BTC price has started wave three of a five-wave upward movement. 

It is currently in sub-wave three (black), which is often the most rapid portion of the upward movement.

While sub-wave two has been extremely shallow, it fits with the pattern of vertical accumulation from the previous section.

There is still a valid bearish wave count in play, which suggests that BTC will reach a top soon.

According to this count, the January-April decline was wave four in the five-wave upward movement.

If accurate, BTC is in its upward movement’s fifth and final wave.

The issue with the count is that there is no alternation between waves two and four. Both are deep, reaching at least the 0.618 Fibonacci retracement support levels.

Moreover, if this is the fifth and final wave of a long-term impulse, wave five would extend instead of wave three, which has not happened.

Even if this is the accurate count, the BTC price will continue increasing in the short-term. BTC is in sub-wave five (black), with a minimum target of $121,137.

Nevertheless, the count is valid and aligns with the bearish divergences in the RSI and MACD.

New BTC All-Time High

The BTC price has recovered admirably since April 7, reaching a new all-time high today, on May 22.

Despite the high, there are some worrying signs, such as the bearish divergences in the weekly time frame and the validity of a bearish count.

On the other hand, the price movement may become parabolic because of the lack of overhead resistance. The fact that the breakout has been sustained leans toward this possibility.

Bitcoin’s movement in the next few weeks is critical and can help determine what happens the rest of the year.