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Bitcoin Soars Past $46,000: Is $50,000 Within Reach?

Bitcoin BREAKS above $46,000, is $50,000 Next?
Bitcoin BREAKS above $46,000, is $50,000 Next?

Bitcoin bulls rejoice! The leading cryptocurrency has defied expectations, surging above $46,000 and sparking speculation about a potential climb to $50,000. But before popping the champagne, Nick takes a closer look at the technical picture and understand the factors at play.

Charting the Climb:

Analyzing the 1-hour timeframe, Nick can see Bitcoin trading comfortably above key moving averages, indicating strong upward momentum. The initial predicted range of $45,600 to $46,975 was smashed, hinting at potentially deeper corrections ahead.

Elliott Wave Theory in Play:

The current price action resembles a three-wave Elliott Wave pattern, suggesting a target range of $47,666 to $49,145 based on Fibonacci extensions. However, a fly in the ointment: bearish divergence is emerging between price and momentum indicators.

Potential Pullback on the Horizon?

This divergence, coupled with overbought conditions in the Relative Strength Index, signifies a possible pullback towards $44,500-$45,000. A further drop below $43,500 could invalidate bullish patterns and trigger aggressive selling.

So, What Now?

While short-term volatility is likely, the overall sentiment remains cautiously optimistic. A brief correction followed by continued upward movement is a potential scenario many analysts anticipate.

Disclaimer: This is not financial advice. Please do your own research before making any investment decisions.

Further Exploration:

Remember, responsible investing requires informed decisions. Stay ahead of the curve by following the ever-evolving Bitcoin story!

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