Bitcoin - Accelerated Cycle Or Expanded Cycle?
My Perspective
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Bitcoin Is Back To Its Retesting Phase
In recent weeks, we've spoken about how Bitcoin was likely performing a downside deviation as part of a volatile post-breakout retest of the Range High of its ReAccumulation Range.
Then, two weeks ago price broke back above the Range High and last week price performing post-breakout retesting to confirm the reclaim.
Granted, the reclaim was not picture-perfect however the retesting intent was clear and the $104400 Range High resistance (red) is back to being generally treated as a support.
So if price successfully retested the Range High as support for almost 6 full weeks before the downside deviation, price has recently added an additional week to that successful chain of retests, for a total of 7 weeks overall.
For as long as the post-breakout retest will continue, Bitcoin will continue to be positioned for its second Price Discovery Uptrend.
Still however, Bitcoin finds itself locked between $104400 to $111k.
Bitcoin - Locked Between $100k and $111k
Most recently, Bitcoin has performed a historic feat: its highest ever Weekly Candle Close.
The final major resistance (red) has been Weekly Closed above and so going forward price will try to reclaim this level into new support.
Of course, given how price barely Weekly Closed above the final Weekly resistance, it offers very little chance for price to cleanly retest this level into support; that is, this retest is likely going to be a volatile one.
But with this highest Weekly Close, the early-stage Lower High resistance that we spoke about two weeks ago has been technically invalidated:
What's interesting about that old prospective Lower High is that it is acting as support on this current dip.
Generally, Bitcoin has a lot of higher timeframe support beneath it.
We know very well about the Range High of $104400 of the ReAccumulation Range.
But on the Monthly timeframe, we can find more:
Since Bitcoin Monthly Closed above the Monthly Range High of $102464 (blue), price successfully post breakout retested it into support to enable this current July upside candle.
Technically, BTC has confirmed a breakout from its Monthly Range and through the developments in price action, here are the higher timeframe supports that have emerged:
So in a nutshell, not only is the $102464 Monthly Range High a key support, but new Monthly levels are emerging here at $104685 and $107244 (both orange).
With the Range High of the ReAccumulation Range of $104400 added into the mix, there is quite a confluence of higher timeframe support at this levels that should act as a demand area to springboard price into Price Discovery Uptrend 2 over time.