The Bitcoin (BTC) price broke beyond the downtrend line on Tuesday and the breakout was confirmed on Thursday. As long as Bitcoin stays buoyant, the trend can be reversed, bringing into play the targets of $120,000 up to $150,000.
Downtrend breakout confirmed?
Source: TradingView
The daily chart above reveals how the $BTC price broke through the downtrend line, and has come back to confirm the breakout. There still is a possibility that the bears could force the price down below the trendline and back inside the falling wedge, although this is low in the list of probabilities.
At the bottom of the chart, the RSI indicator line is moving along an uptrend line. If the indicator line falls below the uptrend, this would be a signal that the same thing would be about to happen in the price action, so this should be watched closely.
A more likely scenario would be that the price, and the indicator line, bounce from the trendlines and that the price heads back to the top of the channel. The $BTC price has the major trendline not too far beneath it, so any quick downward movements would likely be arrested here.
$BTC targets
Source: TradingView
The weekly chart shows the targets for the $BTC price once the breakout gathers some steam. The last major resistance before going back to the all-time high is at $119,400, while a $154,500 target is at the 1.618 Fibonacci extension level.
At the bottom of the chart, the Bitcoin bulls’ trump card is the Stochastic RSI indicators. They are both moving up and getting closer to the 20.00 level. Once they both pass this trigger point, big upside price momentum should kick in, helping to take the price back to the high.
BTC/Gold trend about to reverse
Source: TradingView
Gold has been thriving since it broke out in Q1 of 2024. A 112% rise is the result to date. Against BTC, Gold has performed exceptionally well, outdoing the king of cryptocurrencies by 42% since August this year, and by 48% if one makes a comparison from the end of 2024 to date.
That said, things could be about to change. The BTC/GOLD ratio has come down to the 0.618 Fibonacci, and besides a couple of candle wicks down below, the ratio is holding here. Given that the Stochastic RSI indicators are at the bottom for the weekly, 2-week, and monthly time frames, it should be the turn of BTC to shine. Watch this ratio start to turn around in favour of Bitcoin from now on.
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.
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