Bitcoin [BTC] price continues it’s bullish streak, now confirming a break above bearish resistances with long green candles. BTC has gained $108x in 3 days with a 13% rise.
The price gained $400 over-night as it tested the highs at $941x; for the first time since October last year. While the previous break-out proved out to be a dead-cat bounce (or a bull trap), the current formation as a strong structural background to it.
Leading financial and crypto analyst, Mati Greenspan, tweeted on the clean break above the descending channel, he notes in bullish tweet,
…The downward Channel is Officially Pulverized! At this point, the breakout is clear. The 200 DMA is in the dust…
The price broke above the resistances from all moving averages (50, 100, and 200). Moreover, the oscillators (MACD and CMF) on the weekly and daily scale are bullish as well.
Xi-Pump and Channel Resistance
On a weekly scale, the Xi pump around 25th October is the levels that Bitcoin [BTC] needs to break now. Short-lived as it may have been, the historic pump in Bitcoin – the Xi-Pump, closed the week around $958x after a swift downfall to $7k levels.
Currently, the price action in that week along with the prior support in the range will act as levels of reference for the bulls.
A break above the Xi-Pump closing week at $958x and swing high at $10,37x, the bulls will be clear towards the previous high near $14,000. Nevertheless, in the past this region usually forms a range of uncertainty.
# just confirmed a cup and handle with today’s close. If it can reach it’s target of $11,675 then it would be the first higher high on the weekly in seven months.
Nevertheless, the rise is price has been massively steep. Hence, pull-backs are possible, however, as long as it protects the $8k levels (prior swing low), there is little reason to burn bearish.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com