Market

Bitcoin: The Beginning of a Second Rally for BITSTAMP:BTCUSD by Michael_Wang_Official

A lot of people have been talking about how Bitcoin’s bullish rally is over for this cycle. However, according to my big picture, everything is still on track. So in this post, I’ll demonstrate what I’m seeing for the daily chart , and signs of bullish confirmation I’ll be looking for.

Disclaimer: This is not investment advice. This is for educational and entertainment purposes only. I am not responsible for the profits or loss generated from your investments. Trade and invest at your own risk.

Analysis

Bitcoin formed a rising wedge during its distribution phase, marking $64k as its local top.

– We have broken down from local highs, and are currently accumulating within the ranges marked by the red and green lines.

– The daily candle currently shows a hidden bullish divergence , with lower lows on the price action, and higher lows on the Relative Strength Index ( RSI ).

– What’s also noticeable from the RSI is that it has been accumulating within a triangular pattern, forming lower highs.

– The apex of the pattern is located at around mid July, so we can anticipate a breakout then by the latest.

– I don’t expect this accumulation phase to last past Q3 2021.

– A break above $40k is what I’ll be looking for, and I’d want to see a close above $42.5k for firm bullish confirmation.

Conclusion

If anything, this looks like a good region to accumulate more spot Bitcoin . Based on the long term market cycle, I believe that the probability of this bullish cycle having ended is very low.

If you like this educational post, please make sure to like, and follow for more quality content!

If you have any questions or comments, feel free to comment below! :)

Most Related Links :
usnewsmail Governmental News Finance News

Source link

Back to top button