Bitcoin Breaks Through All Resistance Levels, Will a Rare Pattern Fuel an Explosive Rally?

▲ Bitcoin (BTC) ©Go Da-sol

Bitcoin (BTC), the leading cryptocurrency, has broken through major resistance levels one after another, overcoming strong wait-and-see sentiment. It has completed a rare Elliott Wave pattern, strongly signaling its entry into an unstoppable bull market.

According to FXStreet, an investment media outlet, on April 22 (local time), Bitcoin proved its upward momentum by firmly holding the low of $60,069 on February 6 and then breaking through the key resistance level of $72,226 in one go. Previously, in its March analysis, the outlet predicted that if Bitcoin defended this support level and broke through the resistance, a wave could unfold, pushing it up to $82,314. These conditions have now been perfectly met.

The most notable technical trend currently in the market is the emergence of a rare price pattern called the Leading Expanding Diagonal (LED). This pattern, which unfolds in a 3-3-3-3-3 structure, is often mistaken for a simple corrective rebound due to frequent price overlaps, but it is actually interpreted as a signal marking the beginning of a very strong bullish trend.

Due to the structure of this pattern, the third wave records the longest upward movement, ranging between 123.60% and 138.2%, the fourth wave between 38.2% and 61.8%, and the final fifth wave between 161.80% and 200%. Analysts diagnose that the cycle of the first wave is currently nearing completion and predict that a significant short-term correction to around $65,000 could occur immediately after this wave is completed.

Technical indicators are also unanimously pointing to an explosive rise. Bitcoin's price has perfectly risen above the 10-day, 20-day, 50-day, and 100-day simple moving averages, as well as the Ichimoku Cloud. In particular, the upward breakout of the long-term downtrend line that had suppressed the upward momentum since October last year is decisive evidence that the bullish trend is structurally strengthening.

The final remaining hurdle is the 200-day simple moving average, currently at $85,894. This resistance level is decreasing by approximately $230 daily, expected to align with the main target range within a month. Furthermore, with the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) both drawing upward curves, reconfirming the bulls' dominance, market expectations for Bitcoin's explosive rally after a short-term correction are at their peak.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*