After a period of minimal volatility, Bitcoin is currently trading above its recent highs on both the weekly and daily charts. It has surpassed the $43,800 resistance level on the weekly chart, pending confirmation at the close of the week. Similarly, on the daily chart, it has breached the $44,200 resistance level.
If these breakout attempts hold until the weekly close, it would indicate a positive trend. The market has undergone a period of stabilization, absorbing significant sell-offs from GBTC, resulting in a notable breakout from an eight-week range. This development provides a strong case for the continuation of the upward trend.
Given the prolonged consolidation period and the presence of long wicks at both ends of the range, the most prudent approach appears to be waiting for a break in the weekly consolidation. This cautious strategy aims to capitalize on breakout momentum. Historically, low volatility periods have preceded higher volatility phases, suggesting potential for future movements.
However, if the breakout fails or if the market's range collapses, it could signal unpredictable conditions. In such a scenario, a breakdown from the eight-week range would indicate bearish tendencies, potentially leading to a pullback to deeper support levels. In summary, the outlook remains favorable unless the breakout attempt fails, prompting a reassessment of the market's direction.
If these breakout attempts hold until the weekly close, it would indicate a positive trend. The market has undergone a period of stabilization, absorbing significant sell-offs from GBTC, resulting in a notable breakout from an eight-week range. This development provides a strong case for the continuation of the upward trend.
Given the prolonged consolidation period and the presence of long wicks at both ends of the range, the most prudent approach appears to be waiting for a break in the weekly consolidation. This cautious strategy aims to capitalize on breakout momentum. Historically, low volatility periods have preceded higher volatility phases, suggesting potential for future movements.
However, if the breakout fails or if the market's range collapses, it could signal unpredictable conditions. In such a scenario, a breakdown from the eight-week range would indicate bearish tendencies, potentially leading to a pullback to deeper support levels. In summary, the outlook remains favorable unless the breakout attempt fails, prompting a reassessment of the market's direction.
