The higher degree perspective, combining EW and Fib extension
Price of the bitcoin has formed a phenomenal bull run since the last 9 weeks. It consecutively forms a higher low structure since the break out from the $12000 range. However, we haven't seen any sign of movement that could lead the price into short term drop, at least it's what I see in this weekly time frame.
Current bullish momentum is still becoming a key point from the price which could drives into the higher range. Based on the Elliott wave structure, this could be the 3rd wave coming true. The typical longest wave and parabolic moves up is the main characteristic of wave 3. That's why I use this Fibonacci Extension to project the future movement. At the most case, the wave 3 usually ends up at the 1.1 Fibonacci extension level but considering the price has already broken this level with a huge momentum, there is a huge possibility of the price to test higher structure at the next Fibonacci extension level. During this condition, I see that potentially wave 3 will top at the area between 1.272 and 1.382 level as the next major resistance ($20600 - $21600).
On the RSI, everything looks good as there is still plenty of room for the RSI to have more upside moves in the futures. Even the RSI is now trending at the overbought zone, we can see that comparing to the 2017 peak, the current RSI is considered low as well. MACD shows us a huge momentum too as the MA line has already broken out of previous high structure.
Current bullish momentum is still becoming a key point from the price which could drives into the higher range. Based on the Elliott wave structure, this could be the 3rd wave coming true. The typical longest wave and parabolic moves up is the main characteristic of wave 3. That's why I use this Fibonacci Extension to project the future movement. At the most case, the wave 3 usually ends up at the 1.1 Fibonacci extension level but considering the price has already broken this level with a huge momentum, there is a huge possibility of the price to test higher structure at the next Fibonacci extension level. During this condition, I see that potentially wave 3 will top at the area between 1.272 and 1.382 level as the next major resistance ($20600 - $21600).
On the RSI, everything looks good as there is still plenty of room for the RSI to have more upside moves in the futures. Even the RSI is now trending at the overbought zone, we can see that comparing to the 2017 peak, the current RSI is considered low as well. MACD shows us a huge momentum too as the MA line has already broken out of previous high structure.
