The Climb (Bitcoin)
On the 4hr chart we can see that bitcoin bounced with a strong amount of volume back above the upward trend line. This trend line started 4 months ago in September. As I have mentioned in my previous few charts bitcoin has begun to form a head and shoulders pattern. This pattern becomes bullish at the neck line. In order to reach this we must break through the downward channel that has been forcing bitcoin down for months now. I believe the upward trend line that has been confirmed as support will allow us to do this. As for the last attempt at breaking the downward channel the MACD was indicating bearish. Bitcoin is about to start the bullish crossover now of the MACD which I believe will also assist in breaking the upward trend line and settling above. The two things to watch out for is the breakout of the downward channel and the completion of the head and shoulders pattern. If both of these factors are met we will return to a bullish market.
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