Is bitcoin gearing up for yet another bullish breakout?
Or is there a chance it’ll just be an April Fools’ fakeout?
Take a look at these nearby inflection points I’m watching on the 4-hour time frame of BTC/USD:
Bitcoin (BTC/USD) 4-hour Chart by TradingView
Bitcoin has been on quite a run so far this year, as price was able to skyrocket to fresh highs around $74K before falling back in consolidation.
Still, bulls appear to be on the defense, forming higher lows inside a symmetrical triangle pattern that’s been holding all March. After all, there’s a lot of anticipation for the halving due to occur later this month, as many expect this to bring more upside for bitcoin.
Is $100K in the cards perhaps?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on bitcoin and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
BTC/USD is currently hanging out at the resistance and forming a smaller symmetrical triangle pattern with support at the pivot point level ($69K). Another bounce off this area of interest could set off a bullish break of the larger triangle, too!
In particular, watch out for a sustained rally if bitcoin is able to bust through the previous highs near R1 ($73,224) and a potential test of R2 ($75,162). On the other hand, if the triangle resistance holds like a boss, BTC/USD could fall back to the support zone at S1 ($67,877) near the dynamic inflection points at the moving averages.
Note that the 100 SMA is still above the 200 SMA, but the gap has narrowed enough to hint at a likely bearish crossover. If this materializes, keep an eye out for a possible drop back to the triangle bottom near S2 ($64,468).
Do you think bitcoin will keep moving sideways or is it about to set fresh record highs this week?
