- $500 pump brings Bitcoin closer to passing three-month trend line
- $10,400-$11,000 still on the table prior to halving, or potentially after it
- Long plays still valid down to $7,750 range
On Monday I said that Bitcoin was at a make or break point, and today’s $500 jump suggests that it has decided to make! As hoped, it did indeed kick on from $8,600, racking up an $800 gain since then, reinforcing the bullish narrative I have been sensing since we arrived in this range at the end of April.
The rejection came on the trend line set back in February, a couple of hundred dollars short of the recent high:
Now that we have got this far, Bitcoin needs to show that this isn’t simply a second chance to sell before the halving. To this end, I’m looking for a confirmed break of the trend and horizontal resistance at around $9,600, followed by a successful retest. If that happens we can see a measured move to $10.,400-$11,000:
For margin traders, longs are valid in the two blue boxes below. A break of the lower range suggests that the bears are back in town and we can start analyzing how low Bitcoin can go.
For now however we are looking for any evidence that Bitcoin wants to climb further, with the halving narrative becoming something of a self-fulfilling prophecy, albeit one that can make you rich if you play it right!
