Bitcoin’s price action continues to display strength, and we have reintroduced the bullish scenario back into the chart analysis. As shown in yellow on the chart, Bitcoin has been respecting our key Fibonacci levels, both during the formation of Wave 2 and more recently in Wave 4. After finding support and consolidating at these crucial levels, the price is pushing higher, suggesting that Bitcoin is nearing the end of its current impulsive wave structure.
Current Market Position:
At the moment, we are in the final leg of the impulsive structure, identified as Wave 5. Although Bitcoin has already reached a new local high, this move is still insufficient to conclusively mark it as the end of Wave 5. Ideally, we would expect another push toward the $59,000 region before considering this wave complete.
The chart highlights that Bitcoin has been forming bullish higher highs, but traders should exercise caution. The funding rates are rising significantly, which can sometimes signal an overheated market. Additionally, CME gaps remain open, and divergences are beginning to emerge, which are common in Wave 5 structures.
Short-Term Projection:
Given the current momentum, Bitcoin may reach as high as $59,000 in the coming hours. However, caution is advised when considering long positions at these levels, as the risk of a correction is increasing. Following the completion of Wave 5, we anticipate a corrective movement to begin, likely targeting the $56,000–$55,000 region in a Wave 2 pullback.
This pullback, should it occur in a three-part corrective structure, would be a bullish confirmation that the market is building strength for further upside in the long term.
Key Levels to Watch:
- Wave 5 Target: $59,000 (approximately)
- Wave 2 Support Zone: $55,000–$56,000 (projected)
The market’s next move is critical in determining whether Bitcoin sustains its current bullish momentum or if a more significant corrective wave is about to unfold. As always, it is essential to keep an eye on the funding rates and potential bearish divergences that may signal a reversal.