Bitcoin: The Beginning of a Second Rally

A lot of people have been talking about how Bitcoin's bullish rally is over for this cycle. However, according to my big picture, everything is still on track. So in this post, I'll demonstrate what I'm seeing for the daily chart, and signs of bullish confirmation I'll be looking for.

Disclaimer: This is not investment advice. This is for educational and entertainment purposes only. I am not responsible for the profits or loss generated from your investments. Trade and invest at your own risk.

Analysis
- Bitcoin formed a rising wedge during its distribution phase, marking $64k as its local top.
- We have broken down from local highs, and are currently accumulating within the ranges marked by the red and green lines.
- The daily candle currently shows a hidden bullish divergence, with lower lows on the price action, and higher lows on the Relative Strength Index (RSI).
- What's also noticeable from the RSI is that it has been accumulating within a triangular pattern, forming lower highs.
- The apex of the pattern is located at around mid July, so we can anticipate a breakout then by the latest.
- I don't expect this accumulation phase to last past Q3 2021.
- A break above $40k is what I'll be looking for, and I'd want to see a close above $42.5k for firm bullish confirmation.

Conclusion
If anything, this looks like a good region to accumulate more spot Bitcoin. Based on the long term market cycle, I believe that the probability of this bullish cycle having ended is very low.

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