Bitcoin (BTC) has broken out and up into a critical range in the last few hours, making multiple legs up after a critical price squeeze between trends. The last twelve hours have thus drafted a very positive outlook for the leading crypto’s medium term price prospects.
The critical breakout came in the wee hours (UTC time) of March 27, regaining last week’s consolidation zone in the mid $3,900’s. The last couple of hours have seen yet another breakout, even further into the critical downtrend resistance – a resistance now highly cited on social media, as well as here on CryptoGlobe.
The present breakout came after three failed attempts at cracking the same resistance, pictured below. Price was being squeezed between this important downtrend and the local Feb-March uptrend, and broke decisively up.
Now the struggle to maintain and surpass $4,000 resumes – although with the downtrend seeming to be crumbling, that may become easier.
This important downtrend is pictured below, and represents the price resistance of all of 2018 (on the linear chart). Although everyone can draw this chart with slight variation and precision, the importance of this general trend should be self-evident.
Bitcoin’s performance on the daily Relative Strength Index (RSI) is holding key levels now, after briefly breaking below them. Bullish momentum now seems pretty assured in the short-medium term, but with plenty of room left before being oversold.
The four hour chart, below, shows what may be a medium-term ascending triangle. This pattern is at the very end of being tightly squeezed between the purple support/resistance line and the green regional uptrend support.
A further breakout higher would not be at all surprising. This is the time to watch trading volume, as volume precedes price. To this end, volume on BTC/Tether exchanges like Huobi (shown below) and Binance have indeed been promising, outstripping USD paired exchange volumes.
(Volume on Huobi exchange; source: TradingView.com)
However, even failure to powerfully break $4k and more sideways action would be an encouraging sign – a slow eating-away of the more than yearlong downtrend resistance is a victory for Bitcoin price in any form it comes.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research