The U.S. stock market may have possibly found a top, but Bitcoin is still moving higher. A breakout of $76K leaves the door open to the top of a 12-week long bear flag. This Bitcoin rally is hotting up. Do the bulls have what it takes to force their way out of this bear market?
Bull/bear battle at $76K
Source: TradingView
The 4-hour time frame shows the $BTC price climbing higher, supported by an ascending trendline. Once again the price is up against the $76,000 horizontal resistance level, and the bulls are pressing it hard. The last time the bulls were able to overcome this level, a spurt up to the top of the bear flag was the result. The bulls will want to go one step higher this time and break out of the bear flag.
In order for this current rally phase to begin failing, the price will need to fall through the ascending trendline, and also the strong horizontal support at $74,000. If this happens, the following move would likely be to test the bear market trendline, with the possibility of a move back to the bottom of the bear flag.
Back to the top of the bear flag?
Source: TradingView
In the daily time frame it looks as though the bulls are winning the battle to move up through $76,000. All being well for the bulls, the $BTC price could rise to the top of the bear flag again from here.
The 50-day SMA is still curving up nicely, with a potential cross-up above the 100-day SMA in the coming days. The 100-day SMA is also starting to diverge from following the bear market trendline down. If it continues on the current path, it should also start to curve back around, adding its signal to a possible end to this bear market.
Clear breakout and bullish signals in 2-week chart
Source: TradingView
Instead of looking at the $BTC price in the weekly time frame, we zoom out even further into the 2-week time frame, meaning that possibilities of fakeouts become even rarer.
Here we can see that the current 2-week candle is completely above the bear market downtrend. With only five days or so left in this time frame it is looking increasingly likely that this candle is going to close in a bullish manner, and that is above the $74,000 resistance level, turning it into support. Even if it closes below, as long as it remains green, that would be a confirmation of the bear market trendline breakout.
In the weekly time frame, the Stochastic RSI indicator lines are getting nearer the top of their limits, while in this 2-week time frame they are only just getting started. A close with the indicator lines above the 20.00 level would be bullish indeed.
Finally, the RSI is displaying a similar picture to that in the weekly time frame. If the indicator line remains at roughly this 45 degree angle for the next five days, this will be further confirmation of a change to a bullish trend. A big rally is most definitely brewing.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Credit: Source link
