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Bitcoin (BTC) fell out of its ascending channel on Monday as it followed its latest correction. However, this dip could be over as the $BTC price begins to rise again. Next upside target is $70,000.
The BTC/USD pairing might have taken a dip in favour of USD over the last couple of days, but a resumption of Bitcoin’s inexorable rise looks to be taking place again.
$BTC falls out of its ascending channel
Source: TradingView
The short-term time frame chart above, shows that the $BTC price did drop through the bottom of the ascending channel, turning what was support at $64,400 into resistance.
However, in the period of time that the king of the cryptocurrencies was reversing its upside movement, all the short time frame Stochastic RSIs were able to reset, with indicators ready to move up again, signalling renewed upwards price momentum.
Therefore it might be expected that $BTC battle back through the resistance, and back into the ascending channel. If this can take place, the price can ascend towards the top of the channel, and the target of the all-important previous swing high at $70,000.
If, on the other hand, the price fails to make a higher high, there could be a lot more chop to come within the bull flag, and the price could go a fair bit lower.
Resistance from last bull market must be overcome
Source: TradingView
Zooming right out into the weekly time frame, it can be observed how the $BTC price is battling with the band of resistance that stretches from $63,400, to around $64,400. This is also where the previous bull market two-week candles topped out. For this reason, it will be extremely important for the $BTC price to close above this resistance by the end of the week.
2-week hidden bullish divergence
The hidden bullish divergence should also be noted on this time frame. As the Stochastic RSI has trended downward, the price action has gone up. If this plays out, this could be another reason for Bitcoin to ascend and break through the top of its bull flag.
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.
