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Bitcoin Price All-Time High Imminent Despite BTC Losing $70,000 Mark – As Indicated by Bullish Wave Pattern

Published May 28, 2024 12:31 PM
Valdrin Tahiri
Published May 28, 2024 12:31 PM

Key Takeaways

  • Bitcoin increased by 17% in May, but trades are still below its all-time high.
  • The BTC price broke out from a parallel channel on May 20 but has fallen since.
  • Is the breakout legitimate, and if so, when will Bitcoin reach a new all-time high?

The Bitcoin price has performed well in May, increasing by 17%. The price was well on its way to a new all-time high on May 20, but the rally stalled despite a breakout. Nevertheless, BTC still maintains its breakout by trading above the previous pattern’s resistance.

Since there is only one more resistance left until a new all-time high, excitement is building around Bitcoin’s potential to break through in May or June. Is Bitcoin likely to reach a new all-time high, and if it does, how long will the rally continue?

Bitcoin Struggles After Breakout

The daily time frame Bitcoin price chart shows an ongoing price increase since BTC bounced at a descending parallel channel’s support trend line on May 1. The upward movement led to a breakout from this channel on May 20. Since the channel had existed since the all-time high, the breakout is a sign the correction is over.

Despite this positive assumption, BTC failed to clear the $71,500 horizontal resistance area, the final one before a new all-time high. The BTC price has fallen since, though it still trades above the channel’s descending resistance trend line. In this sense, the decrease resembles a retest after a breakout.

Bitcoin Price Breakout
BTC/USDT Daily Chart | Credit: TradingView

The MACD and RSI provide a bullish signal, but the confidence in these readings is limited. While the RSI is above 50 and the MACD is above 0, they have both started to trend downward. Also, the MACD is close to making a bearish cross (red circle), a sign of a bearish trend.

So, whether the BTC price falls back inside the channel’s confines or bounces and breaks out instead will be key in determining the future trend. The wave count can provide more data on which will be the case.

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

The wave count supports the ongoing breakout and suggests the Bitcoin price will reach a new all-time high soon. The count suggests BTC is in the fifth and final wave of an upward movement (white) that started in September 2023.

The first potential target for the high is at $76,950. The target is found by giving wave five the same length as wave one (yellow). However, there is more confluence between $84,200 and $87,200.

The 1.61 external retracement of wave four (black) created the lower limit of the target. The upper limit is created by giving wave five 0.618 times the length of waves one and three combined.

Bitcoin Wave Count
BTC/USD Daily Chart | Credit: TradingView

The sub-wave count also supports the $84,200 – $87,200 target. It indicates the Bitcoin price is completing sub-wave four, which has taken the shape of a triangle. Afterward, another upward movement is likely.

Giving sub-wave five the same length as sub-waves one and three combined leads to a high of $83,4500, very close to the proposed target.

Short-Term Movement
BTC/USD Six-Hour Chart | Credit: TradingView

Despite the bullish Bitcoin price prediction, falling below the wave one high (red) at $65,513 will invalidate the bullish count. This will mean the correction will deepen and could cause a drop to $55,000. The scenario remains unlikely as long as BTC  trades above the channel.

Bitcoin Will Reach a New All-Time High in June

Despite the lack of strength after breaking out from its corrective pattern, the BTC price trend is likely still bullish. The wave count suggests an all-time high between $84,200 – $87,200 will mark the top of the current increase, after which a correction is probable.

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