The Bitcoin price has now lost more than $7,000 in this latest corrective phase. Currently having dipped under $91,000, will the price continue this bearish price action, or is a bullish wave just around the corner?
Probabilities are of a bounce from here
Source: TradingView
As can be seen in the 4-hour chart above, the $BTC price is at a crucial stage. It has reached the bottom of the ascending triangle, which also has the $90,000 horizontal support level not far below it. A fall through this level could take the price back down to the major trendline.
If this were to happen, this would mean a failure of the ascending triangle. That said, a fakeout has already taken place to the upside, so perhaps one to the downside might balance things up.
The probabilities are that a bounce will take place from here, given the strong supports underneath. Also, the Stochastic RSI indicators have hit bottom again, so a move back towards the top becomes more of a possibility.
Very strong support
Source: TradingView
The daily time frame reveals just how strong the horizontal support line is at $90,400 (orange line). As well as having the bottom of the ascending triangle at this level, the 50-day SMA (blue line) is also lending its support.
If you also factor in that the daily stochastic RSI indicators are coming to a bottom, and could be heading back to the upside soon, you get a sense for a likely bounce and the beginning of the next up-leg for the bulls.
The only factor in the chart above that might disagree is the RSI. The indicator line has fallen through the uptrend line, although there is still time for this line to turn back around before the daily close.
Ascending triangle is key to cracking the $94,500 resistance
Source: TradingView
As always, we keep things nice and simple in the charts. The higher time frame charts tell the whole story, rather than just the little parts of it that the lower time frames tell.
The strong orange horizontal support line is not going to be ruptured that easily, and just below this is the major trendline, with the 100-week SMA just below this (not pictured).
To the upside, the $94,500 horizontal resistance can be seen to be a very tough nut to crack. The ascending triangle will need to do its job in order to force the price through this level. Looking at the extent of the triangle, this could happen this week, or possibly next.
At the bottom of the chart, the Stochastic RSI indicators simply must not roll back over. They need to continue heading up, and the bulls have to make the absolute best of the upside price momentum. If the $BTC price doesn’t get above the last key $108,000 horizontal resistance by the time the Stochastic RSI indicators reach their top limit, this next potential rally might end in failure.
The measured move out of the ascending triangle goes exactly to the key $108,000 key resistance. Could one towering green candle take the $BTC price straight there?
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.
