Bitcoin price has broken out of a consolidative wedge pattern and the upside is wide open if price can maintain momentum.
Bitcoin Price Analysis
Time of analysis: 15h00 UTC
BTCC 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
Two trendlines (blue) that had contained price during the past few weeks have been breached – to the upside – and price is currently retesting a long-term Fib line in the BTCC chart.
Earlier today a bearish ECB outlook report saw the EUR/USD drop below 1.06 while the US Dollar Index pushed above its 100 points “psych level”.
If bitcoin is advancing in response to these market developments, then it has a significant advance ahead. However, before we get too excited, there is still the possibility that the current bitcoin chart move is only reactionary – it is fullmoon, after all.
Firstly, price must hold above the Fib line, immediately below, and then price needs to advance to the next Fib extension target at $328. Once we see these additional confirmations in the chart we can then look to $340, $350 and $360.
The bitcoin price chart had drawn sideways for close on two weeks and, as outlined in yesterday’s analysis, today’s push higher happened at the apex of a contracting wedge price pattern. If price can continue higher then the $300s are open for advance. Falling back into consolidation, or worse, the decline will be a disappointment, so continuing advance during the next twelve hours is crucial for a bullish outlook.
Bitfinex Depth Chart and Buy/Sell Volume
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Bitcoin price charts from TradingView.
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