BTCUSD Daily Analysis: ABC Pullback Signals Bullish Continuation Toward Higher Fibonacci Targets 

Introduction 

Bitcoin (BTC/USD) continues to stabilize after completing a five-wave bearish impulse, with price now transitioning into a corrective ABC structure. The recent recovery, supported by bullish divergence on the Awesome Oscillator (AO), suggests that selling pressure has weakened and buyers are gradually regaining control. 

As long as the current support zone holds, Bitcoin is expected to complete the corrective pullback before extending higher toward the next Fibonacci resistance levels. 

ABC Pullback Structure Underway 

Following the completion of the bearish Wave (5), BTC/USD has begun forming an ABC corrective pattern. 

Wave (A) has already reached the initial resistance area before price retraced into Wave (B), which is currently approaching a key support zone around the Fibonacci 161.8 retracement level. This area is expected to attract buying interest and may serve as the launching point for Wave (C). 

A successful defence of this support would increase the probability of the bullish corrective structure remaining intact. 

Wave (C) Targets Higher Fibonacci Resistance 

Once Wave (B) is completed, Bitcoin is expected to advance into Wave (C), targeting the highlighted resistance zones. 

The projected upside targets include: 

• Target 1: Fibonacci 261.8 extension zone.  

• Target 2: Fibonacci 423.6 extension zone.  

• Completion of the larger ABC corrective structure.  

These resistance levels represent the next significant objectives if bullish momentum continues to strengthen. 

Awesome Oscillator Confirms Improving Momentum 

The Awesome Oscillator previously formed a clear bullish divergence, signalling that bearish momentum weakened as price recorded a lower low. 

Although the histogram has started to flatten, momentum remains supportive of a corrective recovery. Traders should monitor for fresh bullish momentum as price holds above the current support area, increasing confidence that Wave (C) is beginning. 

Trading Outlook 

The preferred scenario is for BTC/USD to complete Wave (B) near the current support zone before continuing higher into Wave (C). 

Traders should watch for bullish reversal candlestick formations such as Bullish Engulfing, Morning Star, or Hammer, together with strengthening momentum on the Awesome Oscillator. 

A sustained break below the highlighted support zone would weaken the current bullish outlook and suggest that additional downside correction may develop before the recovery resumes. 

Conclusion 

BTC/USD is showing early signs of recovery following the completion of its bearish impulse. The ongoing ABC corrective structure, combined with bullish divergence on the Awesome Oscillator, supports the expectation of further upside toward the Fibonacci 261.8 and 423.6 extension targets. As long as the current support zone remains intact, buyers are likely to retain control and drive the next bullish leg higher.