BULL RUN: Bitcoin Breaks Above 7,400, Technicals Align With Fundamental Factors

Bitcoin breaks out and everyone rejoices, but why? What lies behind the movement…let’s examine the technicals.

 

The last 36 hours of trading have finally seen the upside break BTC has been searching for after finding ground near the 5800 mark, a pivot point that held the long-term downtrend channel lower trend boundary. As seen, this large channel/flag is still active and continues to maintain price in a systematic manner. The upper trend line that is now sought out currently stands at about 8k, but as a movement will have giveback and time value in-between, this is likely to sit at about 7800 for a while as discussed yesterday.

This large-scale pattern is also technically a bullish flag if looked at on a wide scale spanning back the total lifespan of BTC. However, the 7800-8k level must be broken to the upside and 8k held as solid support eventually for this to continue to stand true. At the moment, BTC is holding 7200 as support as it seeks out 7600 resistance with a high achieved at 7561 so far, only 49 points shy of hard resistance. This also completes the inverse head-and-shoulders pattern shown for over a week now with the Rogue* Wave System backing price movement. This leg is now complete.
Looking at the tech specs, BTC shows stochastic levels continuing to hold upper levels on the short, mid, and long-term (daily shown) scales. Daily is the back end performer as it aims for overbought(>80) levels once again but is in a straight path upward so far.
MACD levels are generally positive though ticking down on the smaller scales, showing retracement at bay. However, the pattern continues upward with higher highs and higher lows.
BTC is currently a hold. Downside protection should be placed under support for a break, generally around 7100.
Futures Traders- Trade the Trend. The short-term trend is currently long.