Monday’s $BTC breakout got as far as the $90,000 horizontal resistance. From there the price fell all the way back down, eventually to test the downtrend line. Is the way now clear for Bitcoin to leave its bottoming process behind, or could there still be a collapse to $70,000? $BTC price rejects from strong $90,000 resistance Source: TradingView When the $BTC price broke upward from the major trendline, and after breaking through the downtrend, it might have appeared that the long bottoming process was finally at an end. However, when the price ran into the $90,000 horizontal resistance it was like slamming into a wall. It rejected instantly and then proceeded to fall rapidly back down to the major ascending trendline. Not content with this pullback, the price even descended further and retested the downtrend line. From a TA perspective, this wasn’t the worst thing to happen, and even though traders and investors would have wanted to see a sustained rally, a retest of the supports was not a bad price move. That said, it may well be that this bottoming process is not finished with yet. $93,000 to the upside, and $86,000 to the downside are a range in which the $BTC price has been traversing within since mid-November, with just the odd fakeout to the up or downside here and there. Positives in the daily chart Source: TradingView While the $BTC price is admittedly underneath the major ascending trendline, the setup in the daily chart does look more bullish than bearish. The fact that the price has now broken through the downtrend line is a major plus. As can be seen in the chart, the price has come down below the major trendline on various occasions since it arrived there, so the current predicament may not last that long. In addition, the RSI at the bottom of the chart is illustrating that the indicator line came back to its own downtrend line, tested it, and looks to be bouncing. As long as the bulls continue their comeback on Tuesday, the positive sign in the RSI should be reflected in the price action. Bottoming process is playing out Source: TradingView The weekly time frame is also starting to show bias towards the bulls. While the breakout of the downtrend is still weak, it’s a breakout nonetheless. On this weekly time frame the $BTC price is showing above the major ascending trendline. It will now arguably use the trendline supports as a base for upside price action. At the bottom of the chart, the MACD indicator line is revealing a much softer decline, while the histogram bars are continuing to reduce in size. This indicator is rather like a supertanker. As the captain of the supertanker orders a change in course, the tanker’s response is very slow. In the price action, the bottoming pattern is also very slow in forming, and it takes a long time for the price to break its inertia and definitively move upwards. Some expert analysts are saying that the $BTC price will not move until more liquidity enters the financial system. This is starting to happen now. Nevertheless, the charts are beginning to point towards coming upside movement. It could take a while to really get a head of steam up, but that upside move looks to be on the way. 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.
