Bitcoin (BTC) is again on the move, with some solid indications that a breakout may have begun. This is not just any breakout, but a rather important one engaging the heart of a multi-year resistance zone – seeing a breakout from here might lead to a return to all-time-highs.
We start on the 4-hour chart, and see that volume is building after a clear break above the local trendline. Price has now engaged the local resistance level surrounding $9,400, and we could see volume higher today versus yesterday at this rate.
If we move to the daily chart, we can see that Bitcoin is riding well above the parallel channel which contained it during April. The RSI is remains technically overbought after what has been a good May for the leading crypto, but not very overbought – and at any rate, this will not impede a powerful run.
Still, it would have been better for Bitcoin to cool off first, and we could see a collapse if a full breakout doesn’t come soon. The histogram continues to look excellent, looking like it is resuming a bullish expansion and arch up.
The real fireworks are on the weekly chart, though. Here, we see that the last major Fibonacci retracement level is being broken through as we type. The previous MTF structure is being challenged, and if a breakout follows soon we will be very close to seeing that structure collapse.
If that happens, a multi-year trendline will simultaneously be broken. In such a case, there would be very little between Bitcoin and its all-time-high of $20k.
But, it is just speculation until a fuller breakout comes. What is sure is that, every small movement here is very important, with a multi-year Bitcoin structure hanging in the balance.
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