The charts are indicating that the leading cryptocurrency Bitcoin (BTC) may be poised for a bull run in 32 days. What does this mean?
The recent price increase of Bitcoin (BTC) is showing similar signals to the previous two increases, suggesting that Bitcoin has the potential to rise for another 32 days. Since hitting its lowest level of the year at $15,400 in November 2022, the BTC price has experienced three significant increases within a few days. The first increase took the price to a critical horizontal resistance level of $21,300 on February 14, 2023. The second increase brought the price to another important horizontal resistance level of $25,200 on March 14.
The common characteristic of these two increases is that instead of being rejected and experiencing a sharp drop, the BTC price consolidated just below the resistance level (blue ellipse) for a few days, and then continued to rise for another 32 days after the breakout. Recently, the BTC price has increased by over 20% within a few days. A similar pattern has emerged as Bitcoin is approaching a significant resistance zone at $31,000 (yellow ellipse). If history repeats itself, there is a possibility that the BTC price will surpass this zone and continue to rise for another 32 days. Assuming that prices break above this zone tomorrow, the potential uptrend could continue until July 25, 2023.
Weekly Timeframe Bitcoin Bull Structure
The weekly chart reveals an upward trend in BTC price since hitting the year's lowest level at $15,400. For instance, Bitcoin price surpassed the critical resistance level of $25,200, which is the highest level and forms the lowest point of the previous downtrend. It confirmed this as support during the week of June 12-19. It also signals the end of the previous downtrend and indicates the entry into a bull cycle for BTC.
By using Fibonacci retracement levels to identify the local high of the fluctuation, it can be observed that BTC price may rise to the 1.618Fib level at $35,000 and potentially to the 2.618Fib level at $41,000 from the recent downtrend movement at $30,000. Technical signals and historical data indicate that BTC price will likely continue its upward trend in the future. The initial main targets ahead are $35,000 and $41,000. It is worth noting that at the time of writing, BTC is trading at $30,655.
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This article is not investment advice. Anyone considering investing should do their own research and take their own risks.