In this 4-hr chart of Bitcoin, we can see the continuation of the bullish price divergence that has existed since around August 21, with price making lower-lows while both the RSI and MACD are making higher-lows. This gives some hope for a bullish change in momentum and reason to expect the Symmetrical Triangle that has formed during the current period of price consolidation will break to the upside. Above this formation lies a pronounced Zone of Resistance around the $20k level, which will intersect the long-term, declining bear market trendline in the next few days. This provides a narrative for the potentials that exist.
If price brakes above the triangle, it will run into significance resistance in the $19.2 to $20.4k zone as the Bear Market Trendline also drops into this price range. This will make for some very heavy resistance.
Price has only ever been rejected from this trendline since the the all-time high of $69k, so a break to the upside will provide investors and speculators a lot of enthusiasm with the likely outcome that price will continue to rally towards to 1W 200MA (red line). If price is rejected by the Bear Market Trendline then the potential arises for another visit to the $18k zone.
Alternatively, if price breaks the Symmetrical Triangle to the downside then this could see price fall to new bear market lows.
If price brakes above the triangle, it will run into significance resistance in the $19.2 to $20.4k zone as the Bear Market Trendline also drops into this price range. This will make for some very heavy resistance.
Price has only ever been rejected from this trendline since the the all-time high of $69k, so a break to the upside will provide investors and speculators a lot of enthusiasm with the likely outcome that price will continue to rally towards to 1W 200MA (red line). If price is rejected by the Bear Market Trendline then the potential arises for another visit to the $18k zone.
Alternatively, if price breaks the Symmetrical Triangle to the downside then this could see price fall to new bear market lows.
