Bitcoin - Is Bitcoin Ready To Rally?
Analysis on ETH/BTC and Bitcoin Dominance
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Bitcoin Breakdown Averted
Earlier this month, we spoke about how Bitcoin was showcasing signs of breaking down via a bearish Weekly Close but how that breakdown was unconfirmed due to the fact that the $109k level hadn't flipped into new resistance to reject price into downside continuation:
Here's today's update:
Bitcoin indeed didn't fully confirm the breakdown; instead, price has reclaimed the $109k level as support and is now trying to rally higher in an effort to check if $114k has turned into new resistance after being lost as support a few weeks ago.
A big part of Bitcoin checking if $114k will figure as new resistance or not is down to the current Daily inverse Head and Shoulders formation:
Currently, $113k (red) is the major resistance to breach right now.
A Daily Close above it would set price up for a potential post-breakout retest of the red region, which is acting as a Neckline to the emerging formation.
More, a Daily Close above the red region would also confirm that price is going to occupy the upper half of the Daily Bollinger Bands:
Turning the mid-point (orange) of the BBands into support tends to set price up for a move to the very top of the Upper Band, which happens to be around the $116k level.
This $116k level is actually figuring as the Monthly Range High resistance:
After all, BTC is consolidating inside the Macro Monthly Range of $107.200-$115.711 (black-black) and having rebounded from the Range Low, price is now ready to try and challenge the Range High over time.
And a big contributing part in reaching the ~$116k Range High resistance will be turning the $114k Weekly level back into support, but not first without first breaking $113k on the Daily timeframe.
It's clear therefore what BTC needs to do to build into a new Price Discovery Uptrend 3 and it all likely starts with a reclaim of $114k:
After all, $114k was lost as support a few weeks back, and seeing as this has been a cycle of downside deviations, there is absolutely scope for a reclaim of 114k for price to try to build further into a new Price Discovery Uptrend 3.
It's all about $114k going forward as a key pivot point for price.