Bitcoin (BTC) Breakout Alert: Stay Patient for the Big Surge!

Bitcoin (BTC) has been hovering above and below $118,000 for more than a week now. The price is also traversing inside a triangle, and is coming near to a breakout point. Could there be a surge to $130,000 and beyond, or are we in for a dip, followed by more sideways choppiness? Triangle breakout imminent Source: TradingView The latest series of sideways movement after the last surge up from $112,000 possibly won’t last as long as previous consolidation periods. This is because this continuation pattern is a much smaller triangle. Of course, the $BTC price could exit the triangle and then still keep trending sideways, perhaps printing a different, and bigger chart pattern. That said, it does rather look as though a breakout is about to take place. It’s customary for Bitcoin to hardly ever get to the ends of triangles, and it’s much more usual for a breakout to occur not more than around three quarters of the way through the pattern. The price is at this point now, so it just may be a matter of time before the bulls ignite the thrusters and the rocket ship takes off again. The $119,000 resistance is the first target, then a higher high above $119,640, and finally a take out of the $121,000 high before the final ascent to the all-time high at $123,200. If however the bears are able to take control, just under $116,000 would be the last line in the sand before a potential rapid collapse to $112,000. Going below $109,000 would be cause for major concern. Strong support structure below Source: TradingView The weekly chart shows that if the price can get above $119,000 we could be back to smooth sailing and another leg higher, perhaps to $130,000. If on the other hand the price does fall back down, decent price structure, formed by the tops of the falling wedge and the bull flag, would probably act as strong support, and a bounce would be likely to occur from there. RSI trend break on 2-week chart Source: TradingView It’s the 2-week chart that holds a big clue as to where the $BTC price is going next. At the bottom of the chart is the Relative Strength Index (RSI), which signals overbought and oversold conditions. It can be seen in the chart that the indicator has just popped its head above the downtrend line. There is still the best part of two weeks before this can be confirmed, but a surge up to $130,000 would likely push the indicator line well beyond the downtrend. This would be the first stage in the process of attempting to nullify bearish divergence. There is still a long way to go for the indicator to reach the previous high of 87.6. If the indicator line fails to get there, this strong bearish divergence would likely be the major factor for the commencement of the next bear market. 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.

Source: Crypto Daily