When everyone thought that Bitcoin was going to take another dip, the opposite happened, as Bitcoin continues its recovery from $91,000. Can the bulls send the $BTC price past $100,000, or will we see a return to the ascending trendline that stretches all the way from 2021?
Bitcoin keeps market guessing
Bitcoin always keeps the market guessing. If you are a trader, and you are not on your toes where Bitcoin is concerned, you are likely to be taught a lesson, and probably quite a few of them.
Instead of a dip below the trendline that stretches all the way back to the double top of the 2021 bull market, the $BTC price decided to respect the trendline, and not only that, but to break out of its current local downtrend.
Market structure builds above $91,000
Source: TradingView
The short-term $BTC chart above is beginning to show plenty of structure now above the $91,000 level. A range is forming between this lower level and the range high at $100,000. This has been in force since mid-November, and we have already seen a large deviation from the range when the new all-time high at just over $108,000 was set.
If the Bitcoin bulls can force the price up past the current resistance level, there could be another attempt at $100,000, and the possibility of a local higher high.
The main takeaway for the bulls here is that the descending trendline has been broken and a smaller higher high has been made. Even if the price does break down from here, a higher low can be set. Staying within the range is also building market structure which can be used as a base for the next push upwards.
Forget all the indicators - just look at the weekly price chart
Source: TradingView
Zooming out into the weekly time frame, the bullish case for Bitcoin going into the rest of this bull market becomes apparent. There will always be this or that indicator that spreads a contagion of worry into the hearts of traders and investors, but just looking at the bare bones of the above chart, things really do look to be going to plan, at least as far as the bulls are concerned.
The breakout of the bull flag took the $BTC price well clear of the extremely tough $69,000 resistance, which took three years to finally break. Once the $108,000 new all-time high was set, a healthy retracement took the price back to the ascending trendline, which has a huge amount of power gained from nearly four years in the making. All the candle wicks down to this trendline over the past six weeks bear testimony to the so-far rock solid support that this trendline is providing.
Drawing Fibonacci levels from the bull flag bottom of $45,000, up to the all-time high of $108,000, one can see that the first Fibonacci at the 0.236 level is the one that is holding the price up. If this support continues, and the price is able to bounce from here, such a shallow retracement would be extremely bullish going forward. Short Bitcoin at your peril.
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.
