Bitcoin (BTC) has broken out of a bull flag – which we recognized is yesterday’s price analysis – for almost $100 worth of gains on the leading crypto. Bitcoin’s price, at least on CryptoGlobe’s chart, has now broken clear through the 2018 linear downtrend resistance line, and is so far holding most of the new gains as it grazes $4,100.
The movement has come fairly predictably within the uptrending channel (the green field, below) which has been in play for well over a month. And in fact, the top of the channel predicts slightly more upside than has already been put in, at about $4,130.
Yesterday’s bull flag was consolidating squarely in the $4,000 support/resistance (S/R) zone, and today’s movement has pushed BTC to the border of the $4,100-ish zone. The latter S/R zone is the high point for all 2019 price action. If Bitcoin manages to push into this zone, it would be reasonable to expect some sort of correction or pullback – or at the very least some sideways consolidation.
Indeed, Bitcoin is reaching the limits of the market structure begun during December 2018, which tops out at $4,200. Any break above that would be a truly dramatic event for the leading crypto – but it is probably safer to expect some corrections down toward the regional uptrend support line, and a continuing consolidation into 2019. The breaking of the 2018 linear downtrend resistance, however, is a promising sign.
After the 2018 downtrend line, the next important milestone to break is the critical 200 day simple moving average. This line is often used as the border between a bull and bear market. Getting and staying above 200 would spur many to consider the great 2018-19 bear market officially over. This critical mark now lies a mere $600-ish away from current price.
Of course, we all remember what happened in 2018 – when Bitcoin was repeatedly rejected at this line. We must always consider that Bitcoin’s bottom has not yet been found, even as things look increasingly sunny.