Bitcoin Holds Bullish Bias: Can it last?

After hitting a new local high of $81,250 on Tuesday, many are thinking that this might have been the top for Bitcoin. However, a day later and the $BTC price is generally going sideways. Could there be one more upward spike that takes the price through resistance at $82,350, or is the price rolling over before a crash to the downside?

Another bullish pattern?

Source: TradingView

The 4-hour chart reveals that the $BTC price may not be done to the upside just yet. After breaking out of the top of the bull pennant (more touch points than the bull flag alternative), the price was stopped at the $79,100 horizontal resistance level. Since then it has been above and below, but the important thing is that a small falling wedge appears to have developed, and excitingly for the bulls, the price has already broken out of this wedge and there just remains the $79,100 horizontal resistance to be overcome again.

At the foot of the chart, the Stochastic RSI indicator lines are right at the bottom and look to be crossing back up. This could signal the upside price momentum that could take the $BTC price up to the main overhead resistance.

Back for confirmation of the 200-day SMA?

Source: TradingView

In the daily chart, if one looks left, some of the resistance structure can be seen for the current level. This is why the $BTC price is having a problem breaking through. That said, it’s higher between $82K and $83K where a great deal of resistance is concentrated. This second band of resistance is key to whether Bitcoin has much greater ambitions in a new bull market, or whether the price is just going to be rejected and the bear market possibly endures for longer.

Nonetheless, looking at the Fibonacci extension levels, if $81,250 was indeed the top, the 0.618 Fibonacci would have the price coming back to $69,700, which could be for a confirmation of the 200-day SMA as support. This would make a lot of sense, and would be a much healthier alternative than a continuation of this crazy rally.

Valid concerns for a pullback

Source: TradingView

While the weekly time frame does have the $BTC price towering at around $79K, having come from under $63K just a week and a half ago, and the Stochastic RSI indicator lines are driving towards their top limit, signalling big upward price momentum as they go, the concerns are very valid as to whether the price will come to a shuddering halt in the not too distant future.

Chief among the concerns is the solid band of resistance that the $BTC price is attempting to enter right now. To add to this, the price wicked up and gave a perfect touch to the 50-week SMA. This is also resistance until the price breaks through.

It would appear that the current level is probably a good one for a pull back. In the higher time frames the $BTC price is overbought, and also resistance is likely to do its job. There is always the possibility that the price could break up to the upper side of the resistance band, and even make that critical higher high, but the drop is coming. It’s just a case of when.

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.