As the S&P 500 and the Nasdaq continue to make all-time highs with unfailing regularity it may now be Bitcoin’s turn to make its own new high. That said, the $BTC price may need to return lower first in order to retest previous price structure.
Back to test the trendline breakout?
Source: TradingView
The $BTC price is holding up nicely. There was always going to be a downward impulse after $BTC had risen over the weekend in spite of being in quite an overbought state. However, the bulls won’t be keen to let the price go too far down and allow it to take hold underneath the major trendline again. Therefore, some gentle to and fro into a narrowing corridor between resistance and the rising trendline is just what the doctor ordered.
Of course, things are never that simple in trading, so both bears and bulls have to be alert for any eventuality. Nonetheless, as it stands, a reasonable scenario is for the price to chop around before subsequently retesting the major trendline, and also perhaps the neckline of the W pattern. By then, the 8-hour, and maybe even the 12-hour Stochastic RSI indicators will have had time to reset before rising again and signalling renewed upside price momentum.
No major resistance levels left
Source: TradingView
The daily chart for the $BTC price reveals that there are several horizontal resistance levels between the current price and the 8-year ascending trendline at the top. With that being said, none of these can really be considered as major resistances. Therefore, when $BTC goes on its next rally the main issue could be if it gets into an overbought state, as is the case currently.
As far as support goes, the major trendline has become a rising base to which the price can come back down to. In fact, the price will very likely come back to this trendline in order to test the recent breakout, as well as the neckline of the W pattern.
Boom or bust is fast arriving for Bitcoin
Source: TradingView
Bitcoin has a date with destiny, and that date is soon to arrive. Space for manoeuvre is running out as the $BTC price is forced into a narrowing area that is the culmination of this current bull up to now, as well as the entirety of the previous bull and bear markets that stretched all the way from the top of the 2017 high.
Eight years of running below an ascending trendline is either going to end soon, as the price explodes beyond it for the very first time, or it will continue if the price is rejected and falls back down into a new bear market.
There is no other scenario. It’s boom or bust. At the bottom of the chart, the Stochastic RSI indicators have turned around and are ready to move up, while the Relative Strength Index signals caution, as a downtrend line carries the threat of bearish divergence.
It’s an exciting time to be alive. Fiat currencies are fulfilling their destiny by heading towards zero at an accelerating rate, while sound assets are going in the opposite direction. This is The Fourth Turning. Will Bitcoin play a much greater role in this new financial revolution?
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.
