Bitcoin bulls continued their surge yesterday, breaking past $60K mark, and hit $61680 all-time highs before pulling back. There might be some more room left on the north side but it could be limited and bears might remain inclined to be back in control soon.
The crypto trades just below $60K as we prepare to publish and it remains to be seen if bears manage to take control from here. Looking at the wave structure, Wave (3) might have terminated or is close to termination soon.
It should be particularly noted that since $42000 highs, which was registered on January 08, 2021; Bitcoin has been producing bearish divergence on the daily RSI as highlighted here. With each new high the RSI has carved a lower high.
The above is not a confirmation, but a potential sign of bearish reversal ahead. Immediate support is seen around $43000 and a break below should be seen as a definite signal for a much deeper correction lower.
If the entire Wave (3) is retraced, Bitcoin may find support around Fibonacci 0.382 retracement seen around $37000 mark. It is quite normal for Wave (4) to terminate around $37000, before Wave (5) resumes higher again.
Only a break below trend line support seen around $24000-25000 mark, would be considered as a potential trend reversal and Bitcoin might drop through $14000 mark before finding some support again.
Finacademy Technical Team
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