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Bitcoin Price Surges Past $70,000 – Emerging Pattern Predicts BTC All-Time High

Last Updated May 21, 2024 12:19 PM
Valdrin Tahiri
Last Updated May 21, 2024 12:19 PM
By Valdrin Tahiri
Verified by Peter Henn

Key Takeaways

  • The BTC price has trended upward since its $56,552 low on May 1, hastening its increase this week.
  • Bitcoin has repeated a previous pattern that led to a notable increase at the start of 2024.
  • If the Bitcoin price chart mirrors that, how long util BTC reaches a new all-time high?

Bitcoin corrected between March 14 and May 1, falling by nearly 25%. While this correction was contained inside a channel, the ongoing upward movement caused a breakout from the channel on May 20.

Beside the breakout, there are other signs pointing to continued increase, resulting from the similarity to a previous movement and indicator readings. If this scenario plays out, how long until Bitcoin reaches a new all-time high, and what could be the subsequent target?

Bitcoin Surges Above $70,000

The Bitcoin price created a bullish engulfing candlestick last week and is doing the same again this week. The candlestick is a continuation of the upward movement that started in May and validated the $60,000 area as support.

Additionally, there is an interesting pattern developing in Bitcoin’s weekly price chart.

In October 2023, BTC broke out from its ascending parallel channel (white) and then validated it as support at the beginning of 2024. Following that, it accelerated its rate of increase by creating a steeper channel.

The BTC price did the exact same movement after breaking out from its steeper channel in February 2024. In this structure, the aforementioned validation of the $60,000 support area also coincides with the resistance trend line of the steeper channel (green icons).

Bitcoin Price Weekly Increase
BTC/USDT Weekly Chart | Credit: TradingView

So, if history repeats, BTC will create an even steeper channel in its ensuing upward movement.

Technical indicators are leaning bullish. The RSI generated a hidden bullish divergence (green) and increased above 70. The MACD is gradually moving upward and is close to making a bullish cross.

Bitcoin Price Prediction: How Long Until New All-Time High?

The wave count since November 2022 shows that BTC  is in the third wave of a five-wave increase (yellow). Wave three extended, as evidenced by the sub-wave count (white).  If the count is accurate, BTC is in the fifth and final sub-wave of this increase. So, a significant correction will likely occur once the upward movement is complete.

Technical indicators are turning bullish. This is evident by the RSI crossing above 50 and the MACD crossing above 0 (green circles).

Bitcoin Wave Count
BTC/USD 2-Day Chart | Credit: TradingView

Interestingly, the previous time the MACD crossed above 0 and the RSI moved above 50 was in September 2023 (yellow circle). This is just before the Bitcoin price broke out from the first channel, further accentuating the similarities between these two movements.

The wave count gives a target between $84,200 and $87,200 for the top of the increase. The 1.61 external Fibonacci retracement level (black) gives the lower limit of this target. The upper one is found by giving sub-wave five 0.618 times the length of sub-waves one and three.

A closer look at the structure of the correction validates the thesis. The structure shows a completed W-X-Y correction (black) and the start of another five-wave increase. The increase caused a breakout from a descending parallel channel, confirming the correction is over.

Bitcoin Short-Term Movement
BTC/USD Daily Chart | Credit: TradingView

Despite this bullish BTC price prediction, falling below the sub-wave one high (red) at $65,480 will invalidate this count. This is due to Elliott Wave rules, which state wave three cannot cross into wave one territory. Currently, there are no indications pointing to this scenario transpiring.

Bitcoin Begins its Final Upward Movement

The Bitcoin price breakout today and the similarity to the previous movement implies Bitcoin has started the final portion of its increase. The upward movement is likely to take Bitcoin between $84,200 and $87,200, a new all-time high. Afterward, a notable correctionm, which can continue for several months, should ensue.

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