Moving higher in line with the bullish sentiment of the US stock market, the $BTC price is poised to rise to the top of its bear flag. A breakout from there would likely see Bitcoin confirm a trend change back to the upside. Do the Bulls have what it takes to do this?
$BTC Price Basis – Ready for a Bounce
source: TradingView
the Bitcoin price in dollars Business still looks positive. With the Stochastic RSI on the 4-hour chart moving lower, the price appears to be consolidating above the top The strong horizontal support of $74,000 and the descending trend line. If the price can hold above this level until the indicator line reaches the bottom, a bounce that could take the price to the top of the bear flag could be next.
Bullish and bearish condition on daily time frame
source: TradingView
Daily time frame for Bitcoin price in dollars Several possibilities are suggested. For the bullish case we have the highest level. If this is followed by a higher decline (a fairly likely possibility), the change in trend will likely continue to gain validity.
When looking at the chart, this can be seen A potential wedge pattern has formedThe price has just broken out and is looking to confirm above the pattern.
In contrast, for a bearish case, a bearish flag still appears to be the most solid pattern, and if the price is rejected strongly from the upper trend line, it could trigger a drop back to the bottom, and a potential bearish exit from there.
next to The 100-day simple moving average (green line) is acting as resistance Currently, the $75K and $76K levels are also levels that need to be broken even before the price reaches the top of the flag.
Finally, the daily Stochastic RSI can be taken in both directions. They are at the top, so they are signaling the peak of upward momentum, but then it will depend on whether they stay in the bounce at the top, or whether they roll over and go back down. At least in this daily time frame, the jury is still out.
Breakout of the 2-week RSI trend line
source: TradingView
There is nothing better than a really high time frame chart to see in clear perspective how the struggle between the bulls and the bears is going.
Here on the two-week time frame, one can notice that the current candle appears to be crossing a major bear market trend line. If this remains the case in 10 days, the breakout will be on its way to being confirmed.
What is really helping the bullish case is the fact that the RSI trend line has crossed the down trend line. If we look at the last two times this happened, we can see that the result was two huge spikes to the upside – the first of 86%, the second of 69%.
It may also be taken into account that this time there is more room to run, since the indicator line has dropped to around the 30.00 level.
Moreover, the Stochastic RSI lines are poised to move higher above the 20.00 level. If they can get there, this would provide the huge upward momentum the price could take Bitcoin price in dollars Back to an all-time high.
One thing to keep in mind though – it’s early days yet.
Disclaimer: This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
