Bitcoin has pushed through its all-time highs today around $63900 levels, continuing its strong up trend since March 2020 lows registered at $3850. The crypto might still have some room left towards $64700 and higher, before finding resistance.
Structurally, Bitcoin is unfolding a larger degree Wave ((5)) since $3100 lows in December 2018; as discussed earlier. Since March 2020 lows, wave (3) seems to be unfolding and is expected to terminate close to $65000 mark.
Looking at the sub wave labelled here, Wave (3) might be into its 5th wave higher and the extensions are pointing towards $64700 at least. Divergences are beginning to show on the daily RSI and it is ideal during the 5th wave termination.
Also note that Wave 5 began to unfold since $43000 lows and is unfolding into its last wave as well. It is suggested to be cautious around these levels and avoid initiating fresh long positions. The uptrend still remains intact but a corrective drop cannot be ruled out.
If Wave (3) is in place, Bitcoin will reverse sharply from current prices breaking below $59000 and subsequently $55000 as well. It would also confirm that the crypto is on its way to produce a similar degree Wave (4), towards $40000/43000 mark.
Overall, Bitcoin seems to have a long way to go higher after terminating Wave (4) around the $43000 mark as stated here. It might be a safe strategy to take maximum profits off the desk at current levels.
Finacademy Technical Team
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