On January 3, the price of Bitcoin reached a new record high.
Long-term and daily technical indicators remain bullish.
The BTC is probably in wave 5 of a longer term wave 3.
The Trust Project is an international consortium of media organizations based on transparency standards and Bitcoin Trader reached a new record high (ATH) on January 3, this time at $34,778.
Although the trend has not yet shown any significant weakness, BTC has already reached a crucial fibonacci extension level. This would suggest that it is approaching a ceiling, if it hasn’t already reached it.
Bitcoin’s weekly closing
During the week of December 28th to January 4th, the price of the BTC rose considerably, creating a bullish candlestick at the magnitude of 25%. On January 3rd, the CTS reached a new historical high at $34,778.
Despite its massive rise and the seemingly parabolic rally, there are still no clear signs of weakness in the technical indicators. This suggests that the trend is still on the rise.
BTC Weekly Outlook
Similarly, the day chart does not show any clear signs of weakness despite the relatively long upper wick on January 3, resembling a shooting star candlestick. In addition, it can be seen that the volume has not been particularly high over the last two days.
That said, there is no bearish divergence and both the RSI and MACD are still rising, indicating that the price of the BTC could continue to rise.
The 2-hour chart is showing the first signs of weakness, as the MACD has lost some of its strength, practically going into negative territory. That said, the RSI has generated a considerable hidden bullish divergence. This is normally considered a sign of continuity, after which one would expect another upward movement.
That said, there is no structure in place and no clear areas of support or resistance.
The wave count suggests that the BTC is very close to reaching a peak, or ceiling, if it is not already the case.
The BTC appears to be in wave 5 (in blue below) of cyclic wave 3 (in white).
The fibonacci extension 3.61 of cyclic wave 1 (in white) is at $35,037 and suggests that the BTC has already reached its peak. The next largest fibonacci resistance zone would be at 4.61, located at $43,755.
Using the fibonacci extension over the length of waves 1 to 3 (in blue), very similar targets of $34,187 (already achieved) and $43,532 are obtained.
Bitcoin’s rally has become entirely parabolic and has no clearly visible trading structure or support/resistance zones. The fibonacci extensions suggest that the BTC may have reached a ceiling, although the technical indicators do not yet show any weakness.