Bitcoin (BTC) Poised for Upside Trend Break: Price Analysis and Insights

A $2,000 surge in the Bitcoin price on Thursday has taken the number 1 cryptocurrency to the brink of an upside trend break. Will Bitcoin break through and continue this surge back to the high, or could this be yet another bull trap?

$BTC about to break trend + horizontal resistance

Source: TradingView

The short-term time frame chart for $BTC shows that the price is now up against the descending trendline together with horizontal resistance. A bit longer at this level and a new 4-hour candle will print, potentially taking the price to the upper side of the trendline. 

The indicators are generally pointing to a breakout. The Stochastic RSI indicators are at the top for the 4-hour, but the 8-hour and 12-hour are on their way up, together with the daily, bringing upside price momentum.

The RSI indicator is right up against the descending trendline. This is likely to break at the same time as the price action trendline. These breaks, if they happen, should lead to a higher $BTC price.

Main bull target is a higher high at $117,500

Source: TradingView

The daily chart also reveals the trend break that is about to take place. Once, and if, this takes place, the main target for the bulls, besides the $115,000 resistance level, is a higher high at $117,500. This also coincides with strong horizontal resistance. 

Towards the bottom of the chart, the Stochastic RSI indicators have flipped back positive and are angled up, just about to cross the 20.00 level which will add upside price momentum to the shorter time frame Stochastic RSIs.

Right at the base of the chart, the RSI illustrates a bounce of the indicator line from the important 40.00 level, which has provided support for big bounces over recent months. The indicator is also crossing above the yellow moving average line – another bullish sign.

Weekly chart transitioning to bullish?

Source: TradingView

Zooming out into the weekly time frame there may be a hint that this recently quite bearish chart might be transitioning back to bullish. 

In the price action, the current weekly candle is imitating the bearish candle of two weeks ago, but in a completely opposite direction. As the rest of the week transpires, it may be that this week’s candle becomes green and starts to threaten the strong horizontal resistance band overhead.

The Stochastic RSI indicators for this very important high time frame are still on their way down, but if price action makes a big improvement, the 20.00 level may act as support, which has happened in the past.

Finally, the MACD still has its indicator line shaping to cross back down through the signal line, and there is the first small red bar beginning to print in the histogram. However, some bullish price action which continues into the weekend could turn these bearish signals around by the close of play on Sunday. If this happens, next week could be bullish as well, and that all-time high could be surpassed. 

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.