Bitcoin Creeps Above Several Resistance Levels — More Ahead!
Bitcoin has surpassed the 140 day moving average (in light blue) the top of the falling multi month resistance (in black) the top of the triangle (in pink) which I drew many different ways, and now it is approaching the major resistance zone (in red.) In addition to that, JUST LOOK at how well Bitcoin is currently holding the 50 EMA (in yellow.) That average was once major, MAJOR resistance for the bear market, and now we are holding it like a cellphone while texting. That is a very significant technical improvement. Now, if Bitcoin can surpass that resistance Zone, price will surge to the 61.8% retrace, at about $5225. I expect that such a move would be very quick, simply because there is no real resistance until $5200 or so. Regardless of whether or not Bitcoin is rejected here, the fact is that the market has clearly made bullish advancements, which add to the evidence that the bottom is in.
Technically, price is in an inverted head and shoulders pattern, with the neckline being right around the major overhead resistance zone. If you remember from December, I was posting about the area that is currently the left shoulder of the inverted head and shoulders pattern. At the time, I outlined that it was an inverted head and shoulders too, but it didn't break out. After it failed to break out, I talked about how it could become a continuation pattern, producing an even larger inverted head and shoulders pattern. Looking at this current chart, we can see that price appears to have done exactly that. Whether it breaks out to the upside or not, is something we will discover in the coming days.
As you know, I have said how I thought Bitcoin would chop sideways below the low 4000s. Well, now that it is starting to break above these resistance levels, I am second guessing that opinion. A rejection here would give some reassurance to the idea likelihood that Bitcoin will continue to chop sideways between the low 4000s and the mid 3000s. However, a breakout above the resistance zone will quickly change that theory. With that siad, even if price DOES break out above the 4400 level, and let's say it rallies hard to 5225, I still believe that it will fall back toward the 4000 level, and possibly lower. I don't think it will go much lower than 3500, but I do believe that even if price gets a bit crazy here, we will still trend in a generally sideways direction, for the majority of the year. The bear market has ended, and we are now in a transition phase, which should take several months to develop into the beginning stages of the next bull market.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
Technically, price is in an inverted head and shoulders pattern, with the neckline being right around the major overhead resistance zone. If you remember from December, I was posting about the area that is currently the left shoulder of the inverted head and shoulders pattern. At the time, I outlined that it was an inverted head and shoulders too, but it didn't break out. After it failed to break out, I talked about how it could become a continuation pattern, producing an even larger inverted head and shoulders pattern. Looking at this current chart, we can see that price appears to have done exactly that. Whether it breaks out to the upside or not, is something we will discover in the coming days.
As you know, I have said how I thought Bitcoin would chop sideways below the low 4000s. Well, now that it is starting to break above these resistance levels, I am second guessing that opinion. A rejection here would give some reassurance to the idea likelihood that Bitcoin will continue to chop sideways between the low 4000s and the mid 3000s. However, a breakout above the resistance zone will quickly change that theory. With that siad, even if price DOES break out above the 4400 level, and let's say it rallies hard to 5225, I still believe that it will fall back toward the 4000 level, and possibly lower. I don't think it will go much lower than 3500, but I do believe that even if price gets a bit crazy here, we will still trend in a generally sideways direction, for the majority of the year. The bear market has ended, and we are now in a transition phase, which should take several months to develop into the beginning stages of the next bull market.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***