One month ago, I showed how Bitcoin had been trading in a channel pattern for nearly seven months as it lost half its value. I said that “If Bitcoin can stage a convincing, high-volume breakout above this channel in 2020, further gains are likely.” Since then, Bitcoin has broken out of its channel and is now approaching the key psychological level of $10,000 once again. Convincing, high-volume pushes above the key levels of $10,000, $11,000, $12,000, $13,000, and $14,000 are necessary to confirm the continuation of the cryptocurrency’s bullish move.
The weekly chart makes it easier to visualize Bitcoin’s channel pattern and recent breakout. If Bitcoin can clear the technical congestion from $9,400 to $14,000, it should open up the opportunity to gun for its late-2017 highs once again.
For now, investors and traders should monitor Bitcoin’s price action and volume as it attempts to push past its overhead resistance/congestion area.