Bitcoin Breakout! 3 Reasons Why Bitcoin Technicals Are Foreshadowing A Bullish Move

Bitcoin barely makes a move as low volatility throughout overnight trading (US CST) has a range of fewer than 100 points. 

This makes for a situation that readies for a breakout with the overall bear market being challenged, a major pivot area being tested, and a recent volume spike that saw a massive leg up. 

Let’s examine these.

The overall bear market continues to be challenged as the breakout above the long-term upper trend line (shown in orange) gives bullish cause to the momentum of Bitcoin. However, this line must be maintained, which it has done so far, but without any continuation on the upside. BTC sees sort of a “hangout” time with price barely exceeding the 6600 mark – bringing us to the next point of interest.

The 6600 level, although not a true support or resistance level, has maintained as a solid pivot point for BTC throughout trading history. This level was tested three times recently with two major tests and one soft test(wicked). 

BTC now struggles to maintain 6600 but has bounced through it several times over the last few days, making this an interesting point to watch. The failure to break through will result in 6400 support being sought out once again. 

A break below support will ultimately test the 6250 level again which has stood as the major higher low for BTC to attain a possible trend change overall.

Finally, we see the massive upside price action now being tested. After a quick run up to 7800 last week, BTC now remains in retracement. The current retrace move is quite slow, however, has still held to a 1/2 retrace of the previous leg up. Additionally, it has held above support and the long-term bearish upper trend line.

Stochastic levels are almost bottomed mid-scale, and if prices hold, the turnaround to seek overbought (>80) levels should see more upside action.

BTC is currently a hold with downside protection under 6540. If no entry has been made – possible entry point lower as stochastic mid-scale bottoms.

Futures Traders – Trade the Trend. The short-term trend is short – however, prepare for longs in the next three hours (15m scale).