Over the weekend, Bitcoin’s price experienced a significant increase, preventing a potential breakdown. However, the direction of the future trend remains uncertain. Despite a slightly bearish close, the long lower wick on the weekly chart indicates a bullish movement. The wick saved a potential breakdown from the $21,000 horizontal area, which is now expected to provide support again. Additionally, it caused the RSI to remain above 50, signaling a bullish trend. While the trend is still neutral due to the range, several bullish signs make a breakout more likely, potentially leading to an increase towards $28,000. However, a breakdown could result in a fall towards $17,000.
The daily chart provides mixed signals, with the BTC price bouncing on March 10 and creating a massive bullish candlestick on March 12, validating the previous channel as support. However, the daily RSI has yet to break out from its bearish divergence trend line and is still below 50, making it difficult to consider the trend as bullish.
On the six-hour chart, the Bitcoin price broke down from a descending resistance line, following an RSI breakout and movement above 50. Currently, the BTC price trades at the 0.5 Fib retracement resistance level at $22,400, with a potential breakout or rejection determining the future trend.
According to wave count analysis, BTC is in a corrective wave two, with the bearish count suggesting a decrease again. However, the sub-wave count in wave one is unusual, making the first count more likely. An increase above the previous highs at $25,250 would invalidate the bearish count.
In conclusion, the direction of the future BTC trend remains uncertain, with the price potentially falling below $18,387 or increasing above $25,250 to determine the future movement. While a breakdown could result in lows below $15,000, a breakout could lead to an increase towards $28,000.
