On the 4-hour chart, Bitcoin (BTC/USDT) has shown signs of a potential recovery. The price broke above the resistance level of $61,000 after forming an ascending triangle pattern, which is typically a bullish continuation pattern.
This breakout indicates renewed buying interest, potentially signaling the end of the recent downtrend. The ascending triangle pattern, characterized by a series of higher lows converging against a horizontal resistance, often leads to upward price movement once the resistance is breached. The breakout was accompanied by an increase in volume, further validating the move.
The $61,000 level, which previously acted as resistance, is now a critical support level. If Bitcoin holds above this level, it could confirm the start of a new bullish phase, with the next significant resistance around $64,944. However, a failure to maintain this level could lead to a retest of the ascending trendline near $59,500.
Traders should consider entering a long position near $61,000, with a stop loss below $59,500 to manage risk. The target would be the next resistance at $64,944, but a strong momentum could push the price higher. Monitoring volume and price action around $61,000 is crucial to assess the strength of this breakout.
This breakout indicates renewed buying interest, potentially signaling the end of the recent downtrend. The ascending triangle pattern, characterized by a series of higher lows converging against a horizontal resistance, often leads to upward price movement once the resistance is breached. The breakout was accompanied by an increase in volume, further validating the move.
The $61,000 level, which previously acted as resistance, is now a critical support level. If Bitcoin holds above this level, it could confirm the start of a new bullish phase, with the next significant resistance around $64,944. However, a failure to maintain this level could lead to a retest of the ascending trendline near $59,500.
Traders should consider entering a long position near $61,000, with a stop loss below $59,500 to manage risk. The target would be the next resistance at $64,944, but a strong momentum could push the price higher. Monitoring volume and price action around $61,000 is crucial to assess the strength of this breakout.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.