The Bitcoin price surged back above support mere hours before yesterday’s weekly close, but more milestones must be achieved to see Bullish Continuation. Covered: Back Above Support The Next Hurdle Potential Paths Forward Back Above Support After Friday’s big move down, things were looking pretty grim for our intrepid hero, Bitcoin.  It had fallen out […] The post Bitcoin:  Back Above Support After Strong Weekly Close appeared first on CryptosRus.

Bitcoin:  Back Above Support After Strong Weekly Close

The Bitcoin price surged back above support mere hours before yesterday’s weekly close, but more milestones must be achieved to see Bullish Continuation.

Covered:

  • Back Above Support
  • The Next Hurdle
  • Potential Paths Forward

Back Above Support

After Friday’s big move down, things were looking pretty grim for our intrepid hero, Bitcoin.  It had fallen out of the bottom of the bullish “Falling Wedge” we’ve been tracking.  It struggled to climb back up into the pattern, and was ultimately looking like it would be rejected.

Then suddenly, without warning, mere hours before yesterday’s weekly close, the price shot up.  Not only did it reenter the Falling Wedge, but it even went so far as to test near the top of it before seeing a slight pullback.

As a result, Bitcoin ended up printing a bullish looking “Hammer” style weekly candle with a long wick to the downside.

The Next Hurdle

If we are going to see a bullish continuation for the Bitcoin price, there are a few more important points of potential resistance that must be overcome.

First, we have to break out of the Falling Wedge pattern to the upside.  There is still room to move sideways here, so do not be surprised to see the price bounce around inside the pattern for a while, possibly even testing the bottom trendline again before moving up, should breakout occur.

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Next, and perhaps most importantly, Bitcoin needs to sustain price action above the 50 and 20 Day Simple Moving Averages (image below, green and yellow lines).  These are both places where resistance should be expected.  If price can break, and hold above these moving averages, we should see the 20 cross back above the 50 before too long, as strength returns to the uptrend.

After that, only one thing will stand in our way.  The current all time high of $69,000 USD.

Potential Paths Forward

The images below illustrate two different scenarios that could potentially lead to a bullish continuation for the Bitcoin price.

 

 

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