🅱️ Bitcoin, Back To Basics & $42,000 (Multiple Timeframe)

Ok, let's go back to basics, this is the weekly chart: BTCUSD

Almost two months of retrace and Bitcoin manages to stay above EMA10 weekly.

The whole chart is absolutely bullish as Bitcoin trades above its May 2022 low by a mile.

All the action we've been seeing since mid-March is just a long drawn out consolidation phase above EMA50.

First EMA50 was conquered as resistance.
Resistance levels become support once conquered and so Bitcoin did what is most classic and moved back down to test this level.

It went below it for a single session and is now back in the green.

If we consider all the candles from 13-March to present day, we can see there hasn't been any new major highs but just sideways with mild volatility.

The good news?
The longer the consolidation phase, the stronger the breakout once it takes place.

The major resistance in this timeframe is really $31,500 - $32,000. Above this range Bitcoin can easily fly up.

The cup patterns on the chart in blue represent the bear market bottom low followed by a higher low.

Bitcoin will never go back there, the lower it can go on the next major correction can be around $19,000 being extremely bearish but the range goes up to $21,000 and $20K. So the bottom might happen above $20K.

The highs 17K is possible in a very, very weak market after the next high, but this is unlikely based on technical analysis as we have a very strong hammer on the session dated 6-March. It would be really hard to break the wick low as support.

Let's not get ahead of ourselves, the bullish bias has been confirmed and so we want to know how far up in this wave can Bitcoin go.

Both the Fib. extension numbers and relative market action are pointing towards $42,000 as a very strong resistance and this might as well be the next peak, but as these markets are wild, we can see a long wick up to 48K or a max of 39K if somehow the market becomes weak.

The "weak" scenario is the least probable, we are more likely to see it go beyond to the upside rather than a bad performance. That is because we've been through the worst and Bitcoin continues strong. When good news starts to come in, really soon, that's all Bitcoin needs to shoot up.

The daily timeframe looks great; main chart above.

After a hammer in the previous session we got a candle that broke EMA10, EMA50 and EMA21 as resistance, on high volume so that there is no doubt that we are going up.

The 7-Aug. hammer ended as a higher low compared to 1-Aug., additional strength to the bulls, both days volume up.

Finally, look at the MACD bullish cross:
When this signal shows up, we have days, weeks or months? for prices to go up.

The RSI is strong and we know this, additional strength to the break above EMA50 and EMA10.

And so we have a perfect combination of all the classic signals we use to read charts.

✔️ The indicators are bullish.
✔️ Full green candle with high volume as it moves above the moving averages supported by a strong RSI.
✔️ The rest of the Altcoins market is recovering while the Altcoins individually have been printing 2-3 digits green daily now for months.

What will you do knowing that Bitcoin is going up?
How will you prepare knowing that in 2024 most of the Altcoins will grow 10-30X?

Think it out for some time and then boost, like, comment & follow!

Thanks a lot for your continued support.

Namaste.