We saw a nice surge on Bitcoin price last week price bounced from $42200 to over $48,000 which is around +13.3% move in a week. Looking at the weekly chart there is a potential price breakout. The question is where is #Bitcoin heading next based on charts and this is what we are going to discuss in this article.
Before we start this week analysis here is a short overview of what i posted in my last week's $BTC update so that you know what we discussed before and now.
Last week's view
As price was only consolidating so i ended up my update with a short note that it is still bullish and that is what we saw last week. A bullish move up
Now lets dive into the current picture.
BTCUSD (Monthly)
The monthly chart is now slightly above the key monthly level but you do not have any confirmation yet that the area is now broke as long as the candle close above this $47100 ish area. i attached the monthly chart because our weekly analysis will be based on this area.
BTCUSD (Weekly)
Technically that's a breakout on the weekly chart as the candle closed above it but that's not enough. now price should continue to show the strength this is what you expect from the price after a breakout. As long as price holds above $44k on the weekly closing basis. it is okay to continue being a bull. But as i said price should not spend more time here now it should just keep moving up. This is how a valid breakout works.
What price we can target next ?
I pay more attention to the broken structure and pay less attention to what's coming ahead because as long as price holds the structure anything coming ahead of the price will be broken eventually.
But since some of you may want to know so here it is.
The first hurdle for the bulls is sitting at $51800 area it may have a short term impact on price. just in case price broke the psychological $50,000 number. Bears will not accept it and short it and the price may continue to squeeze them untill around $52k. And on the other side bulls will start being excited on $50k break and add more into their positions or open fresh buys.
So there will be a mixture of sentiments from both bulls and bears. Price may squeeze the bear till $52k and trap the late bulls with a rejection from this area. So this is why it is important to pay a close attention to this area for these psychological reasons. it doesn't have to happen this way it's just an assumption just in case we see a break of $50k.
Key area to hold $44k on the weekly as long as it holds above it, bulls can expect more upside.
Once price holds above $52k the roads will be clear for $60,000
I hope you understand the $BTC update learned something it. I would love to hear your feedback.
