Early in the morning today (UTC time), Bitcoin (BTC) filled in the last few hundred dollars that made up the gap between price and the ultimate make-or-break moment in early 2020. As we have lately outlined in this space, the leading crypto has been trending toward the top of a downtrending channel; this channel has been in play since July 2019, and there is now a clear chance for Bitcoin to break the channel and leave the downtrend as 2020 gets rolling.
We start on the 4-hour to see the modest breakout, which has closed the last gap up to the important resistance around $8,600. This breakout narrowly overtook the previous price high from 8 Jan. In the current configuration, the RSI is showing a clear bear divergence; this presents something of a predicament for Bitcoin, in that it must break higher out of the larger structure if it wants to avoid the effects of this bear divergence.
Turning to the daily chart, we see that Bitcoin is generally right at the downtrending resistance, around $8,500 (depending on how one draws this chart). Here, strength is not overbought on the RSI, which gives the crypto a nice runway to climb higher.
Volume for the day, still early in the day, has already outstripped the last two days volume. This is a good start, and might encourage the rest of the market to pile in.
Moving to the weekly, we see the situation and the consequences that will likely stick in the coming days. If Bitcoin is rejected here, like it was in October, we are likely to see a steep selloff that w ...