Bitcoin (BTC) rose sharply on February 28, with its RSI and MACD close to generating a strong bullish signal.

Bitcoin has been on the rise since January 24 and looks to be following the rising support line.

So far, this line has been verified several times. On January 24 and February 24, BTC almost collapsed from this support, but created a very long lower wick and recovered the line shortly after.

On February 28, BTC surged and created a bullish candlestick with a range of 15%. Measured by its magnitude, this was the largest bullish candlestick in more than a year.

The closest resistance levels are at $44,400 and $51,150. The latter is the 0.5 Fiboracci retracement resistance and horizontal resistance area, which is very important.

Indicators give bullish signals

Technical indicators are bullish in the daily time frame. This is especially evident when the RSI is above 50 (green icon). The RSI is a momentum indicator and readings above 50 are usually considered to be a sign of a bullish trend.

In addition, the MACD, formed by the short-term and long-term moving averages (MA), is rising and approaching positive values. This means that the short-term averages are almost faster than the long-term averages.

The last time the RSI was above 50 and the MACD was also above 50 was in October 2021, when BTC was rising towards its all-time high.

In early February 2022, BTC failed to sustain the uptrend when the RSI was above 50 (red circle) but the MACD was negative.

It is therefore crucial that MACD enters positive territory to confirm the uptrend. This could also lead to a breakout of BTC above $44,400.

What is more interesting is that the RSI has not even entered overbought territory yet, which usually happens before a reversal.

As a result, the daily and six-hour time frames offer a bullish outlook, suggesting that the uptrend will continue.

BTC Wave Number

The long-term wave number remains unclear.

As for the short-term analysis, there are still two main possibilities.

The first one shows that the continuous growth is part of the ABC correction structure. In this case, wave A and wave C have an exact 1:1 ratio. This indicates that the upward movement may be over.

However, the fact that the top of wave C has moved above the resistance line of the current rising parallel channel raises some doubts about this possibility.

A partial high above Feb. 10 at $45,850 (red line) would invalidate this wave count.

The bullish data suggests that the rise is part of a five-wave rally that could lead to new highs. Of these, BTC is currently in the third wave.

If BTC manages to stay above the channel resistance line and form a horizontal correction pattern, then this is the correct count.

A break below a wave high of $40,330 would invalidate this particular wave.

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