Bitcoin came to the point of decision on Wednesday and made its breakout to the upside. The yearly high of $49,000 is now firmly within its sights.
With a backdrop of war and severe economic uncertainty, bitcoin appears to be doing what it was created to do, and that is to provide safety for wealth outside of a fiat currency system designed to do the opposite, and extract wealth.
Bitcoin breaks the ascending triangle
Source: Coingecko/Trading View
The next step on bitcoin’s journey looks to have been achieved, which is a breakout of the ascending triangle. $BTC has confirmed the top of the triangle now, and therefore it would appear that the price is likely to go higher.
Traders always need to err on the side of caution, so if the price should break back into the triangle and then break below and confirm, $BTC would be heading back down to lower levels.
Next stop: $47,000?
That said, it does look quite rosy for bitcoin here. The overall correction from the $49,000 yearly top was around 21%, so this does tick the box for a decent retrace, although 30% would have been even healthier.
$47,000 is the next major resistance from here, and it will be interesting to see how quickly $BTC can get there.
Weekly Stochastic RSI ticking back up
Source: Coingecko/Trading View
A big bonus is that the weekly stochastic RSI momentum indicator has entered into oversold territory, and looks as though it is going to tick back up. This particular indicator on the weekly time frame generally always leads to upside moves.
The last 3 times the stochastic RSI on the weekly bottomed, it led to gains of 99%, 28%, and 96%. These 3 weekly RSI rises (numbered in yellow) have included $BTC’s entire bull run thus far. The previous bull market that ended in November 2021 included 5 of them (numbered in white).
This might suggest that there are only two more cycles of the weekly stochastic RSI to come. It might therefore be hoped that they both lead to big rises in the $BTC price. Although this also might suggest that $BTC may not reach $100,000 this cycle.
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.
