The bitcoin price has broken out, but has still not been able to get above $69,000. Will this lead to a continuance of $BTC’s rollover from the high of $73,800, or can $BTC make a higher high and go on to make a new all-time high?
A higher high is crucial
After a week of either weak, or negative flows from the Spot Bitcoin ETFs, $BTC still managed to break out of its downward channel over the weekend. The next absolute must for the king of the cryptocurrencies is a higher high, as a lower high will mean that $BTC could continue to roll over from its top of $73,800.
Source: Coingecko/Trading View
Looking at the short term time frame of the 4-hour, it can be seen that $BTC broke out of the bullish channel. Currently sat at the resistance at $67,000, a critical juncture has been arrived at.
The price has still not made a higher high, and this resistance will have to be broken if $BTC is to achieve this higher high. The stochastic RSI (momentum indicator) has reached the top and is now crossing down, meaning that $BTC may go back to confirm the breakout before going higher.
That said, this is only short term price action, and the stochastic RSI could turn back up and allow $BTC to break above $68,200, which would be the higher high. The all-important resistance at $69,000 would then be the next target.
Bearish divergence on weekly time frame
Source: Coingecko/Trading View
Zooming out to the more macro view on the weekly time frame, it can be seen that $BTC is still contending with bearish divergence, whereby price went up, while the stochastic RSI made a lower high. On the higher time frame this divergence is more serious than for the lower time frames. If the divergence does play out, and it does look as though $BTC has possibly started to roll over, the market could get the deeper correction that many have been screaming for across social media.
A healthier bull market
A bigger correction could mean that the bull market would be healthier and would probably go on for longer and lead to a higher price when $BTC finally does make a top.
Another scenario could be that $BTC traverses sideways in a range for an extended period of time. This would be likely to build price structure, which could form the platform base for the next stage of the bull market.
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.
