In our previous analysis on Bitcoin we confirmed that price was in a bearish short-term trend but very close to key support at $38,000. The RSI was trading inside a triangle pattern and a break out would be the first signal of a reversal. Bitcoin today is gaining bullish momentum as it breaks above the short-term resistance trend line.
Blue lines- trading range
Black line- resistance
Bitcoin is breaking above the black downward sloping resistance trend line. Price is turning upwards from the lower range boundary and key support of $38,000. The RSI first gave the bullish signal when it first broke above the upper triangle boundary. Bitcoin has the potential to start a new upward move towards $50,000. Support at $38,000 remains key and I prefer to be bullish as long as price is above recent lows.
