Bitcoin Holds Firm Above $80K: Bullish Trend Change Now Underway

With the U.S. stock market seemingly disregarding the Middle East conflict and making new all-time highs, Bitcoin has followed suit. The $BTC price is now holding strong above the crucial $80K level and looks as though it may head higher. Is this the rally that changes the trend and pulls crypto out of its bear market?

$BTC price holds critical support: next stop $84,600?

Source: TradingView

The short-term time frame illustrates how the $BTC price has continued to follow the small ascending channel to the upside. Not only has it led the price through the top of the bear flag, but the price has also broken above what was the critical $80,600 resistance, now turning this level into support. 

The next resistance levels are not particularly strong until the price meets $84,600, which marks the low point of the previous bear flag, and also where a CME gap can be closed.

Next big obstacles to be overcome

Source: TradingView

The daily chart reveals the next big obstacles in the upward path of the bulls. This comes in the form of the descending 200-day simple moving average (SMA), the horizontal resistance at $84,600, and the 0.618 Fibonacci level at $83,450.

The confluence of these barriers would be expected to really test the resolve of the bulls, especially considering that the $BTC price is starting to become overbought.

The Fibonacci levels are taken from the top of the first bear flag down to the bottom of the current bear flag. For the price to climb back as far as the 0.618 Fibonacci would be a great level for the bulls to attain before the price starts to pull back. That said, if the bulls do keep their foot on the accelerator, the 0.786 Fibonacci level at $90,000 would probably be the ultimate target for this rally.

Momentum on the side of the bulls

Source: TradingView

In the weekly time frame the $80,600 level is still resistance. We will need to wait until the close on Sunday to see if the $BTC price has been able to stay above this level. Even then, the following weekly candle will need to confirm this potential breakout. 

Therefore, there is still a lot to play for, and while all is fun and games in the lower time frames, it’s the higher time frames where the major moves are confirmed, or where they fail.

All this said, things are looking good up to now as far as the bulls are concerned. Yes, there is a long way to go to get to the $98,000 level that would change the trend around and reignite the bull market, but a great start has been made. Breaking a bear flag to the upside is an incredibly bullish thing to do, and so if this is confirmed, it would add a huge amount of positive sentiment to this rally.

Momentum is on the side of the bulls. Firstly, the Stochastic RSI indicators are at the top of their range, and could bounce above the 80.00 level, as happened in the run up to the all-time high. Secondly, the MACD is showing a strong cross-up of the blue indicator line over the red signal line. Each time this has happened in this last bull market it has led to significant price gains.

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.