After trading in a horizontal channel for almost three months, Bitcoin has technically broke out of the channel since we had a daily close above 42k, which is an incredibly bullish sign. Will the bull-run continue from here?
At the moment, we're seeing a strong red day being developed on the daily time frame. It was to be expected that we'd see some kind of minor correction during one of the strongest run-ups that BTC has seen in recent memory.
There's currently two things that can happen. - BTC blasts through 42k and consolidates around that area, only to resume the run-up after some minor consolidation. This is what BTC is currently doing. - BTC will fall back inside the channel. I'm confident that the regions around 30k are behind us for now, a bounce around 36k would be much more likely. This would be the 'healthiest' option for Bitcoin, since strong run-ups like we're facing now are unsustainable in the mid-term.
Assuming that BTC will remain bullish, the main area of resistance for the coming week will be between 47k-49k.
A couple of weeks ago I made an analysis where I compared the current bull-cycle with the three bull-cycles before that. I'm a strong advocate of the idea that bull-cycles will become less intense and will take longer to reach their highs. This theory would support the idea that the current bull-cycle is far from over.