Bitcoin has broken out of the bearish channel and above the key horizontal resistance at $40,000-$41,000. Price has provided a reversal signal after being under pressure the last couple of months, falling from its all time highs near $70,000 towards $30,000 and the June-July lows.
Blue lines - bearish channel (broken)
Red rectangle- horizontal resistance
Bitcoin is trading above $42,000 above both the bearish channel and the red rectangle resistance area. Bulls need to keep price above $38,700. Previous resistance is now support. If the entire decline from its all time highs is complete, our minimum bounce target for Bitcoin is at $46,500. Our most probable bounce target is at $55,000 if we see a break above $46,500.
