The Bitcoin price is continuing to push higher as a circumspect market looks on. Could this really be the start of the big rally that takes Bitcoin back to the highs, or will the bottoming process drag on further?
$BTC poised to break higher
Source: TradingView
The 4-hour chart for $BTC reveals that the price is poised at the brink of a breakout. After a fakeout on Monday, where the price went back inside the bull flag and all the way back to retest the $90,500 horizontal support, a bounce took place from there, and now the price has broken out again, retested, and looks ready to either break out or reject from the $92,000 horizontal resistance.
All looks good in the indicators at the bottom of the chart. The Stochastic RSI indicators are heading to the top, signalling upside price momentum, while the Relative Strength Index is showing the indicator line peeping above the downward trendline.
Bitcoin breaks out against gold
Source: TradingView
Zooming into the very low hourly time frame for the Bitcoin/gold ratio, it can be seen that $BTC has just edged through a downtrend against gold. Of course this is a very low time frame so caution is required, but in the high weekly time frame 19 ounces is the major support bottom for $BTC against gold. 25 ounces is the next big resistance level. Watch for Bitcoin to start redressing the balance against gold from now onward.
Bitcoin ready to move higher against all major assets
Source: TradingView
Moving out into the daily time frame for $BTC it can be observed that the price does appear to be breaking up through the $92,000 level. A move up to the key $94,000 horizontal resistance level now looks likely.
A breakout of the ascending triangle (in green) would move a lot of eyes back to Bitcoin – eyes that have been focussed far more on the AI sector, as well as on gold and silver. These assets rapidly moved skywards as Bitcoin went in the opposite direction and foundered at a bottom for several weeks.
It’s now time for Bitcoin to rise against all these assets and especially against the US dollar. The next move is likely to take many by surprise.
Huge upside price momentum inbound?
Source: TradingView
So what can be said for the bears as we zoom right out into the high time frame? Probably the only real concern is that a bear flag is still in play. That said, the ascending triangle fits the price action a lot better, and if this pattern holds firm, the measured move up to the key $108,000 horizontal resistance level would nullify the bear flag anyway.
The market is generally unaware that Bitcoin could be about to tear higher. Sentiment is deep in the Fear segment, and the vast majority of retail investors have moved to the AI and precious metals sectors in the belief that these are going to continue posting higher gains. They may well do so, but the $BTC price is at the bottom for just about all of these assets when their ratios are compared. Mean reversion is about to take place.
Finally, one only has to look at the Stochastic RSI indicators for the weekly, 2-weekly, and monthly time frames. All are at their respective bottoms. The weekly is the first to rise, and as can be seen, the indicator lines are just about to both pass through the 20.00 level. Huge upside price momentum is inbound.
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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