Bitcoin has broken out of its downward-slanted channel. Looking at the daily chart we see:
From March 2024 Bitcoin was in a downward slanted channel. Typically when this occurs a breakout can be expected to travel in the same direction as it entered. So, since it entered the channel in the upward direction we can expect a breakout to the upside. And the more times it tests the upper limit the stronger the breakout will tend to be. In this case, we saw six tests of the upper limit before we got a final breakout and then a retest. This is the perfect setup for a massive breakout to the upside.
Beginning in August we got a smaller upward channel leading to the final breakout in November. This combined with Trump’s positive Crypto rhetoric, a Trump victory and the typical 4-year BTC cycle and we have a recipe for a massive move in BTC. Typically BTC moves MUCH more than you could possibly imagine so this is still early days.
The good news is that we should see a correction as this initial explosion corrects, taking it back down to its moving averages, but as long as it stays above its 50 (green), 100 (pink), and 200 (red) day moving averages, the uptrend is intact. Typically, we shouldn’t see a fall below the point labeled 7, and more likely the new floor should be near the congestion around 76,000. A fall to this level could provide one final entry opportunity.
