Bitcoin Prepares for Next Upside Move: How Far Can It Go?

The Bitcoin price has continued to fall since the $65,400 local top, losing $2,250 in the process. However, upside price momentum is starting to build and the next rally to the upside could be key for taking out stubborn resistance. How far could this potential rally go?

Rally loading

Source: TradingView

The short-term time frame chart shows how the $BTC price has come back to test and retest the bear market trendline since breaking beyond it late last week. Could the price continue to follow the trendline down until it meets with the bull market trendline? This is a possibility. 

A small descending trendline is guiding the price down currently, but if the $BTC price should break through this, the rally back to the key $66,600 horizontal resistance would be on. The Stochastic RSI indicator lines are just about to get above the 20.00 level, so this could signal the initial momentum needed to break higher.

Daily chart suggests bounce is about to happen

Source: TradingView

The daily chart really does suggest a decent bounce from here or perhaps from the bull market trendline. Breaking through the bear market trendline was a real plus for the bulls, and holding above the bull market trendline has provided that slow and methodical grind up that is potentially describing a bear market bottom.

One slight area of concern is the Relative Strength Index (RSI). The indicator line has fallen out of the wedge pattern, but if we look left at the previous big rally, it can be seen that the trend did falter about half way along its length, before regaining momentum and continuing higher. The same thing could be happening here.

Next target: $73K?

Source: TradingView

In the weekly time frame the current candle may be red, but that is because the $BTC price has come down to confirm the breakout. The next candle is likely to be green as long as the price doesn’t go much lower.

At the bottom of the chart, the MACD shows that the signal line and the macd line are still on their way up from that all-time bottom. The macd line is above the signal line, and while that continues to be the case, it is bullish for price action. In the histogram, the green columns are slowly getting bigger. If the rally takes off, expect these columns to start growing much bigger. Next target: $73K?

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.