Crypto Price Update: Bitcoin Showing Multiple Signs of Bullish Continuation
Bitcoin’s (BTC/USD) strength this year is leaving many in a state of awe. Every bullish run since February 2019 has been met by heavy skepticism. Most expected that Bitcoin would eventually die but the king of crypto just keeps on pushing. Even today, many on social media are bearish on Bitcoin. This is the case even though as of this writing, BTC/USD has increased by over 82% from its 2018 bottom of $3,128.89 on Coinbase.
Our technical analysis shows that a deep retracement is not going to happen anytime soon. We strongly believe that Bitcoin is very likely to trade as high as $7,800 in the next few months. In this article, we reveal how Bitcoin is showing multiple signs of bullish continuation.
Monthly Resistance Breached
Those who are bearish on Bitcoin are most likely looking at the shorter timeframes. That’s not the best strategy to understand who’s really in control.
Instead of looking at the daily or even the hourly charts, switch to the monthly timeframe to learn the market’s current range and then work your way down.
A scan of the monthly chart tells us that for the first time in over a year, Bitcoin has taken out a monthly resistance level.
BTC/USD Monthly Chart
$4,800 is a crucial price level for Bitcoin. When the market broke above it in October 2017, Bitcoin generated three green candles to skyrocket to an all-time high of $19,891.99 at Coinbase. Now that Bitcoin has recovered this level, it is clear that the market is bullish on the higher timeframe.
On top of that, Bitcoin has also managed to breach the diagonal resistance that has kept the market bearish for more than a year. Both the horizontal and diagonal resistances are being converted into support. As long as Bitcoin stays above $4,800, the macro trend is bullish.
Bullish Continuation on the Weekly
Now that we’ve established the current sentiment, we can work our way down and look for continuation patterns. Switch to the weekly chart and you will see that up until yesterday Bitcoin was struggling to go above immediate resistance of $5,500. However, you will also see that the market painted a large cup and handle pattern with the neckline at $5,500.
Weekly chart of BTC/USD
Calculating the size of the pattern, the current breakout at $5,500 with high volume would give us a target of $7,800. This may be quite difficult to believe considering that people are mostly bearish on Bitcoin. Perhaps this is the very reason why the market can explode to such heights.
Bullish Continuation on the Daily
If you’re still not convinced, you can switch to the daily chart and you will easily spot another continuation pattern. An ascending triangle/bull pennant is brewing. Take out $5,500 and the initial target is $6,200.
Daily chart of BTC/USD
$6,200 is the logical target considering how bulls tried to stay above this level from August to November 2018. It is now a strong resistance area and many will likely short at this price. As a contrarian, this creates a perfect setup for a short squeeze.
Bitcoin remains bullish as long as it stays above $4,800. Given that Bitcoin just broke out of $5,500 resistance, the initial target is $6,200. A move above $6,200 will likely generate massive bullish momentum that can ignite a true disbelief rally and push Bitcoin to as high as $7,800.
If you’re leaning on the bearish side, we urge you to carefully consider your position.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.