Bitcoin still hasn't shown any significant retrace. Looking at the chart above, signals are coming which are pointing to a breakout to the upside without any retrace at all, is it possible?
Of course, it is possible...
Let's take a look at the 3D Time Frame chart so that we can show you what we are seeing...
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What can we learn by looking at Bitcoin ( XBTUSD ) on the 3 Days (3D) chart:
Let's start with the last candle that closed. XBTUSD is showing a full green candle with the highest volume since the 18th of December. This candle fully confirms the break above EMA10 (green line) which gives increases Bitcoin's bullish potential when it comes to TA.
The next signal is the downtrend line from the 27th November, also marked (red dashed line) on the chart. Our full green candle with above-average volume closed above this trendline , signaling strength. Two days after the breakout and still remains above it holding strong.
RSI is bullish and at its highest since September 2018, that's 5 months. The highest it has been in 5 months.
The MACD is trending up and gaining momentum.
The next strong resistance is sitting at $4241, which is marked by the 24th December's peak, followed by $4423 which is marked by late Novembers peak and EMA50 ($4503). So the next target for Bitcoin , if it can break above $4241, is the $4420 - $4500 range, this is where the strongest resistance will be met. If this level is broken, Bitcoin can continue its climb up. I will share a new analysis with the targets that follow.
The main support on this time frame is EMA10, which is sitting at $3700. For Bitcoin to go bearish it needs to close below this level. As long as we remain above it, the above analysis remains valid. If it breaks down and closes below it, then a new analysis is needed as the possibilities of additional bear action increases.
My View: Bitcoin wants to break to the upside with the least amount of retrace possible. I believe this can happen within the next few days. 3-5 Days max for the next breakout.
The chart signals and indicators are pointing to a breakout to the upside. I also agree with the charts on this part.
What about you, where you think Bitcoin is headed next?
Share your charts and opinions in the comments section below...