For the last couple of weeks, it’s become clear that Bitcoin ( BTC ) has been approaching a very important decision point. Now, after the May candle closing, the leading crypto seems to be choosing the more bullish of the options. Notwithstanding a breakout-fakeout—a very real possibility with a rich history—there is little between this price and BTC’s all time high of $20k.
We note the monthly chart below, and especially the April and May candle closings. The May closing has closed directly within the red resistance trendline, putting natural pressure on this zone to break—something that has not happened in the two-plus years since that trend was first set.
Also noteworthy is the April candle closing, which closed bullishly above the March death candle which saw the crypto (and every other) market collapse in the wake of COVID-19.
The entire length of this price structure goes back to roughly April 2017, when the bottom portion of it was laid (blue, uptrend support). Therefore, a break of this structure now would be the break of, in fact, a three-year-old structure.
If we do see an upside move, $14,000 will likely serve as resistance, being a clear area of significance on the monthly chart (dotted line). If we see price break down from here—again, a real possibility—we are likely to see selling down into sub-$5k territory.
But if we do see a break up, there will be little to keep Bitcoin below $20k.
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