Bitcoin looks like it may be breaking out of a flag formation any second. I've been watching to see what it was going to do the last couple days. Let's see what's going on.
I was expecting a breakout yesterday, but the market had other plans. I said we could see price break towards $3000(which I thought it would), or pull back and retest $2670 again. We did get a retest of $2670, but the price also dropped to $2600 for a little bit. It appears the market wanted to establish some more support at the $2600 level. That most definitely looks like a strong support level now. Yesterday made the 4th and 5th time the price of Bitcoin has tested $2600. Look how it bounced right off of it twice as buyers bought each drop to $2600 all the way back up to just under $2700!
Currently, price is at $2797 and has broken above the resistance line. Price was making lower highs and higher lows until it got squeezed right out of the flag formation between the resistance line and the trend line. The price of Bitcoin is bumping it's head on $2800 again right now, and I'd say we'll see a pop when it breaks above $2800. Once it does, the next resistance level is in the $2860s to $2870s, so I would be looking for a retest of those levels. Then we can aim for a retest of $2900. It would be good if a little more time was spent building support in the $2870s, even though it made a decent bit of support there a couple of days ago.
If the market decides to pull back and test support again, we could see a little more action in the $2670s. I'm not expecting this though. We're still in a bull market and the RSI and MACD are in decent position for a swing to the upside. The MACD is right in the middle and just started to turn up. The RSI is a little above center, but nowhere near overbought. This should be an interesting night for Bitcoin traders. As always, keep your stops tight and trade safely!
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