Bitcoin (BTC) is once again flexing its muscles in this 2019 market, after a bounce off of $10k has been elaborated into a series of breaks above key levels – culminating last night in a retouch of $12,000. The leading crypto seems to be exiting all of the downtrending market structures from last week.
We see below the apparently brief corrective season that Bitcoin had – and which now seems very possibly over if the leading crypto can hold some key gains (more on that later). Bitcoin fell 30% from highs of almost $14,000 in only about six days.
Bitcoin is now consolidating above a key support/resistance (S/R) zone around $11,600, which is an important level from the 2018 market.
Zooming in on the current action, Bitcoin seems unstoppable (again), as it methodically stairsteps its way through every trendline and resistance zone.
We see that Bitcoin was rejected right at the next resistance zone, above; and then perfectly and successfully retested the downtrending line of the previous parallel channel at $11,626 on the Bitstamp chart.
This textbook breakout and retest could easily segue into a break above the next – and last – resistance block above $12,100-250.
Looking at the daily, we see that we have almost run out of resistance zones to clear. Although the day (July 4) is very young still, we can consider how important today’s daily close could end up being.
Any daily close above $11,800 or thereabouts would help lock in yesterday’s gains. At which point the daily candle closes above $12,360 – whether today or in coming days – there will be no local resistance left to hold Bitcoin back from resuming the general uptrend.
As discussed at length on CryptoGlobe recently, last week’s correction of 30% within six days is rather shallow and brief – but it is consistent with historical corrections during a Bitcoin uptrending market.
If Bitcoin holds onto its gains from yesterday – as it is already doing at time of writing, with the successful retest of the breakout zone – we will eventually be forced to concede that its correction is complete (ignoring the “CME gap“). If that happens, we could quickly be revisiting Bitcoin’s all-time-high of $20k, as there is little to no resistance between there and $14k.
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