Is Bitcoin set for a break-out to the upside and potentially a return to $20k, or are we nearing the end of Bitcoin's latest rally?
The Bullish Scenario: Bitcoin consolidates around the lower 9k's for a while before retaking and sustaining above 10k. Price pushing above $10,500 results in a lot of buying pressure causing price to surge by thousands.
After rallying over the past week with implications of a reversal, bitcoin is still encountering a lot of bearish sentiment. Presently, bitcoin is up against resistance from the 200 ema on the 8-hour time frame.
This would not be the first time Bitcoin has broken through resistance in this rally, however there are many areas of resistance in the mid-7k range.
On the 4-hour time frame, bitcoin is getting squeezed between the 21 day ema and the 200 ma. On the hourly time frame, a pattern which looks to be a symmetrical triangle has formed. If bitcoin could break through the four-hour 200 ma, that would set up a potential golden-cross.
On the larger time frames, bitcoin is in an ascending channel, ranging for now.
Looking at trend lines on 12-hour stochs, it appears there is at least a possibility of a reversal coming soon. Not only are 12-hour stochs beginning to turn, the MACD indicator is in a very weak (low volume) downward trend. Although it has only been a few ticks since the sell signal was given, a reversal could soon be in the cards if bitcoin can hold above 6050.
According to the yearly progress of bitcoin, trend line analysis suggests price could have already reached 2020's highs. Trend lines also indicate that price is near the bottom, but there appears to be room for a slightly lower low, at around 3500-3550.
Bitcoin's price could reach $7850 to 8k if the measured move of an ascending triangle breakout pattern plays out. This would also complete an inverted "bart" pattern.
Aggressively, this could lead to the formation of a head and shoulders pattern which would point to 10k.