Confidence is beginning to flood back into the cryptocurrency market as Bitcoin continues to hold above $9,000. Now that the #1 cryptocurrency has begun to stabilize, we see the rest of the board beginning to recover as bullish market sentiment picks up again.
In the 2hr chart above, Bitcoin is moving promisingly toward the key breakout area at $9,500 which has been a strong resisting level over the long course of BTC’s decline this year; recently acting as a neckline support for the bearish double top pattern that sent the price tumbling last month.
The recent price action is tracking well within a bullish flag pennant which usually indicates that the price target will extend to the same length as the opening bull run, or the ‘flagpole’.
With Bitcoin being such a highly volatile asset it is difficult to predict the length of its bull runs, particularly during moments of high market tension.
By breaking the current uptrend into two channels, we can look at the present and future supports and resistance to get the best idea of where we’re likely to see the price test and fall back on, over the course of the next few weeks.
Channel 1 (Red)
In this channel we can see that BTC overcame the bearish resistance at $8757 that had held it down at worryingly low levels over the last 2 months. Now it’s working as a key support line for this new uptrending movement.
Inside this channel we can also identify a softer resistance level at around $9050 where BTC support lost confidence in the earlier run ups and failed to hold above $9000 twice, before breaking clear on the 3rd attempt.
Now we can see that the price action is moving confidently towards the ceiling of channel 1, which sits perfectly along the 0.382 fib level. We would like to see the candles consolidate between the upper part of the flag and this level before it breaks out.
Channel 2 (Yellow)
In this area we can see the breakout targets for the anticipated bullish continuation.
Price target 1: (4.21% from breakout point)
This is an early target of $9,900 which has been a key flipping support/ resistance level for BTC in previous movements, as the market swung with uncertainty around the $10,000 mark through the middle of March, last month.
It’s likely that we’ll see investor’s confidence being tested here again as Bitcoin looms back towards this keystone price area.
Price target 2: (8.84% from breakout point)
Once Bitcoin breaks cleanly above $10,000 then we’re likely to see the asset push on triumphantly to the next fibonacci level above at 0.236 ($10,340). This should be surpassed fairly easily with it not being a particularly strong resistance at this level.
Price target 3: (14.47% from breakout point)
As BTC edges closer to $11,000 we’re likely to see similar opposition that we’ll witness with the first price target. Auto-trades and profit taking will begin to chip away at the bulls progress here at $10,900 and we may start to see a bearish reversal attempt to drive the price back down.
If the market can overcome this psychological level and breach above $11,000 then we may start to see the Bitcoin mania return that we all enjoyed back in its heyday of November last year.
This article appeared first on Cryptovest
