Bitcoin showing signs of a possible break to the upside on the 1 hour chart.
BTCUSDT
You can see the red down trend channel has been broken/ rejected on the 8th Jan but still trading within the wedge.
Today we broke that wedge on the move to 42.5k, making me think the 39.8k support was rejected.
If this theory is correct and we continue to make higher highs, based on 1,3,5 waves the 45k could be tested again.
If the 1,3,5 plays out that will have also formed a successful inverted head & shoulders pattern, signalling a bullish move to the upside.
Also if we take a look on the daily chart the relative strength index is at oversold levels. This all alines nicely within the long term uptrend (white diagonal line through the chart) which we just bounced up off.
Was 40k the bottom? Let me know your thoughts in the comments.
BTCUSDT
You can see the red down trend channel has been broken/ rejected on the 8th Jan but still trading within the wedge.
Today we broke that wedge on the move to 42.5k, making me think the 39.8k support was rejected.
If this theory is correct and we continue to make higher highs, based on 1,3,5 waves the 45k could be tested again.
If the 1,3,5 plays out that will have also formed a successful inverted head & shoulders pattern, signalling a bullish move to the upside.
Also if we take a look on the daily chart the relative strength index is at oversold levels. This all alines nicely within the long term uptrend (white diagonal line through the chart) which we just bounced up off.
Was 40k the bottom? Let me know your thoughts in the comments.
