🚀 Analysis: Bitcoin breaks through the downward channel, indicating a strong bullish signal? 🌟
The price of Bitcoin broke through the $66,000 mark yesterday, setting a record for the largest single-day increase since August 23! This exciting news has made the entire cryptocurrency market boil. But don't rush to celebrate, the daily candlestick chart shows that the market outlook is still neutral, because Bitcoin is still in a long-term correction downward channel.
However, the dawn of hope has appeared! The successful breakthrough of the 200-day exponential moving average, the bull support band, and the long-term downward channel in the daily chart on Monday released positive signals.
This is similar to the low of nearly $30,000 since October 2023, and seems to indicate that the broader upward trend has regained dominance. If this trend continues to be bullish, the price of Bitcoin is expected to break through the historical high of $73,000.
The key point of market analysis is to focus on price movements and trend changes, rather than time factors. This feature allows traders to more effectively filter out irregular price fluctuations and noise, thereby more accurately assessing the current trend and potential trend reversals.
🔍Despite the breakout of the descending channel, challenges remain! 🚧
Although the breakout on the daily chart provides the possibility of a rebound to new highs, traders should remain cautious while being optimistic. At the same time, the candlestick chart shows that bulls have not been able to stand firmly above $70,000 since March, and this level may once again become a strong resistance to the upward price.
Therefore, traders still need to pay close attention to the possible invalid bullish signals on the daily chart, which may indicate that the price will fall back into the descending channel. As shown in late September, the failure of the breakout is often accompanied by further price declines.
👀 What do you think? Do you think this breakout of Bitcoin is a real bull signal or just a flash in the pan? Do you agree that $70,000 is the next major resistance level for Bitcoin?
