Bitcoin is breaking out above the key $66K resistance on Tuesday. Can the bulls sustain this breakout and push the price up to $73K, or will a lack of volume result in a fakeout? Bitcoin brea
Bitcoin is breaking out above the key $66K resistance on Tuesday. Can the bulls sustain this breakout and push the price up to $73K, or will a lack of volume result in a fakeout?
Source: TradingView
The short-term time frame shows us that the $BTC price has broken out. The bulls have finally managed to get their act together. Getting from the bottom of the channel back to the top could be seen as a pretty good feat from the bulls, but actually breaking out of the channel, confirming the break, and now surging beyond the key $65,600 horizontal resistance level is the cream on the cake.
Is this rally going higher? It looks as though it might, but it must be borne in mind that there is a good chance that the price will come back to test the $65,600 resistance first, thereby turning it into support. This could be an excellent spot to buy the rally (when/if the price comes back to retest).
Source: TradingView
Awe and wonder. The daily time frame clearly demonstrates what looks like a strong breakout so far (disregarding the lack of volume up to now). The measured move out of the channel would take the price to around $73,400 should it fully play out, which coincides with key horizontal resistance.
At the bottom of the chart, the RSI is also perhaps getting ready to signal a major breakout. The ascending wedge pattern, which would generally be considered to be bearish, could actually break out to the upside, making it a very bullish move instead. The indicator line at the top of the wedge will need to be watched closed to see if it does penetrate the top trendline and hold above it. The indicator line is currently just starting to peek through.
Source: TradingView
Seeing the $BTC price poking through the top of the descending channel in the weekly time frame is a very refreshing sight. This is currently the eighth week that the $BTC price has spent at and around the $60K bear market ‘floor’. Where many punters were expecting the price to fall a lot further (which it still might do) an upside breakout is quite a novelty for a bear market that is 288 days in. Of course, if this does become the turnaround that leads into a new bull market, the actual bottom would have been on day 268, at a price of around $57,800.
Another reason for the bulls to be cheerful is the Stochastic RSI, which has the indicator lines angled up from the base of the 20.00 level, which is the signal line for the start of upside price momentum.
Could this turn into a failed rally? Absolutely it could. That said, the first major target is the measured move out of the channel at $73,440. The next target would be a higher high above $82,800.
There are some that will say that the bull market would only be confirmed if the price got above the $98K high. While that would be true from the perspective of ultimately confirming the macro trend change, getting above the last high at $82,800 would likely be enough, unless this bear market was going to break the record for length.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
