Something really exciting could be happening in the Bitcoin (BTC) market, which could result in the next major bull run for the leading crypto. If this bull run executes, there is very little resistance between the current price and $20k, the all -ime high.
Starting on the daily chart, we see what may be a breakout from multi-year resistance, here depicted as a blue band. The RSI is getting a little overbought, but not very, and a parallel channel suggests that the present uptrend may have a clear path to about $10,600.
We may note here that there is actually not an impressive amount of volume here on the major Bitstamp exchange. Clearly, for a later mega-breakout more volume will be needed than we are currently seeing.
Moving to the 4-hour chart, we see that the present uptrend move remains fairly strong, although it has entered the overbought region on the RSI. The 8 EMA is still holding, and the histogram here is still ebbing up.
Again we must note the volume, which has decreased between the last two moves. We can imagine that this short term trend will have to take a break soon, unless more volume comes in.
Finally, we move to the weekly chart. We note last week’s strong bar up, which closed above the multi-year resistance level on this chart for the first time in – years. Volume here did break with the prior week’s volume, and we see a resumption here on the histogram profile to a bullish expansion.
The key choice here between Option 1 and 2, it must be said, has STILL not been taken. The limit of the regional market structure is at $10,500, and we need to see this level cracked decisively to consider Option 1 the likely path ahead.
Finally # 2, if we zoom out to a naked weekly chart we get a full sense of the import of these smaller moves.
We truly are right on the cusp of breaking over two years of price action. Bitcoin may soon follow Gold in retesting all-time-highs.
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