Bitcoin hit a new all-time high on January 6.
Daily technical indicators are bullish, but smaller timescales are showing signs of weakness.
BTC broke a short term descending resistance line.
On Wednesday, January 6, the price of Bitcoin Superstar reached a new all-time high of $ 35,879.
Despite some weaknesses in the smaller timescales, Bitcoin is expected to continue to climb towards $ 39,000.
Another record high for Bitcoin
On January 3 and 4, BTC created two successive bearish candlesticks , a shooting star and a hangman . When found in an uptrend, they are normally bearish reversal signals. These indicators suggested that BTC was likely to decline.
That said, these bearish elements were eclipsed by a bullish candlestick on January 5, which virtually broke past previous highs.
On January 6, BTC finally hit another all-time high of $ 35,879.
In the day data, technical indicators have yet to show any sign of weakness
The six-hour chart shows that despite the new highs, both the RSI and the MACD show considerable weakness in the form of bearish divergences.
The divergence of the MACD is visible in the histogram as the line thereof. That said, the RSI has yet to complete a bearish swing failure (also known as “ swing failure ”).
The two hour chart shows a break above a descending resistance line which catalyzed the upward movement.
For the price to continue to rise, it needs to validate the $ 34,500 area as support, and stay above it.
The wave count suggests that BTC is in sub-wave 5 (in orange) of wave 5 (in blue).
While the rally is extremely wide and a correction is long overdue, the move on January 6 increases the possibility that BTC will have one more high to hit before its correction.