Bitcoin (BTC) has taken a nice turn up today, a couple of days after its third halving. The upshot is that the leading crypto is again challenging the regional market structure; but we also get a potent danger for a double top on the low timeframe chart.
We start on a 4-hour chart and see that Bitcoin made a steady jump in past couple of days and is now back over the local inflection zone.
The RSI has broken through a local trendline, which suggests there may be some strength behind the move. The histogram is also expanding nicely at the time of writing.
Going to the daily, we do see that the hidden bearish divergence formation is continuing to stick, and we definitely want to see its price hit about $11,000 in order to invalidate this formation. Its price is now above significant support around $9,500, and as long as it stays there we can be bullish.
Finally, on the weekly chart, we again see the scope of what is happening: price is again within striking distance of the top of the box, and thus has a chance to break out of this structure.
If price does break out here, it will also be breaking out of a two year downtrending resistance, the red field. This would be a huge event, making every move here important.
Bitcoin’s hashrate recently hit all-time-highs just before the halving, but is currently dropping (which was forecast).
With the U.S. unemployment rate now hitting Great Depression levels, there is a bearish case that people will be unable to buy and speculate on crypto; however, there is also a bullish case that massive money printing – in the form of fiscal stimulus – across the globe may eventually translate to increasing inflation, thus making assets like Bitcoin and gold stronger prospects.
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