After a series of news that brought down the price of the entire market, such as Evergrande and (another) ban on China, Bitcoin is back on the rise.
Contrary to expectations, the world’s main cryptocurrency again makes a precise move breaking resistance to point out a test at a new price level. Understand.
There are 2 important points to consider in this graphical analysis: the support at $41200 has held back the fall and the breaking of resistances, both of the averages and of the downtrendline.
The interesting thing about the daily chart above is that the move breaks the averages and the LTB to change the trend on intraday – that is – if we place the chart at H1 (hours), we will see a downtrend being broken by today’s movement.
On the daily, we have confirmation of a resumption of an uptrend with only the resistance at $47500 as an obstacle.
If the BTC price breaks this resistance, the trend is for the chart to continue its long-term upward path. That’s why the current movement is important; it’s like a ‘restart’ of growth.
One point that can undermine this footprint is the movement’s lack of volume. That’s about +18% growth in 2 days without volume which can only mean a ‘Bull Trap’ (a bear trap). Just a whale playing in the market.
For the entire crypto community, option 1 is, of course, the best.