The Bitcoin price has generally been going sideways and up since the $80,000 low. Is the bottom still forming, and when could Bitcoin finally break out of its current bear flag?
Decision time for the $BTC price is approaching
Source: TradingView
The short-term chart for $BTC shows how the price action is still grinding sideways, but with a slight bias to the upside. Two downtrend lines are shown, given that there is the possibility that if one goes by the candle wicks, the breakout may not even have happened yet. That said, the price is starting to tap against the $94,000 horizontal resistance. The outer downtrend line is now below this.
From the bears’ perspective, the price is still undulating within a bear flag. These flags mostly break downwards, so with the price unable to get above $94,000, it could instead fall back to the bottom of the bear flag. But then again, providing huge support at the bottom of the flag is the major trendline.
Either the bulls or the bears are going to have to give way, and that point in time is approaching soon, as the space between the $94,000 horizontal resistance, and the major trendline closes.
Bulls expect a surge
Source: TradingView
Zooming out a bit further into the daily time frame, the breakout does look legitimate, together with the confirmation of the breakout. The main issue, at least for investors and traders, is that the $BTC price is not doing a lot. There’s a long way to go to get back to the all-time high so some sort of a surge is perhaps expected.
The indicators at the bottom of the chart are well-positioned for a surge. The Stochastic RSI indicators are bouncing at the top of their range, and could continue to do so. The RSI indicator is respecting the new uptrend and is heading higher.
Room for one more weekly candle before breakout?
Source: TradingView
The weekly time frame does seem to suggest that a bottom is forming for the $BTC price. If one looks left at the previous preparation for the breakout of the falling wedge, it can be seen that there was rather more bottoming price action. That said, there was a lot more room for this to take place. Currently, in order to stay above the major trendline, there is only room for one more weekly candle.
These are the two probable scenarios: First, the price breaks out definitively either this or next week. Second, the price falls down and through the major trendline. Yes, there are varieties of the above, but generally these are the two options.
Given that the breakout needs to happen soon, and that the Stochastic RSI indicators are angled upwards, and near to the 20.00 level, the higher probability is that the price breaks out to the upside. By the end of next week we should know for certain.
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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