Bitcoin busted through a long-term triangle consolidation pattern to suggest that a major trend is in the works.
Where could BTC/USD be headed next?
Take a look at these potential targets I’m seeing on the daily time frame!
Bitcoin (BTC/USD): Daily
Bitcoin (BTC/USD) Chart by TradingView
A combination of risk-taking and anti-USD action on election-related uncertainty allowed bitcoin to surge above its descending triangle chart pattern that had been holding since March this year.
The rally hit a roadblock at R1 ($69,025) right around a major psychological mark, forcing BTC/USD to retest the former triangle resistance, which seems to be holding as support.
Can bitcoin aim for new highs from here?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on bitcoin and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!A move past the latest highs could clear the way for a climb to the next potential bullish target at R2 ($74,747) which is slightly past bitcoin’s all-time highs.
However, the 100 SMA is still below the 200 SMA to reflect the presence of bearish vibes, which could take BTC/USD back inside the triangle and onto a test of the near-term support zones. If this happens, stay on the lookout for dips to the pivot point level ($60,785) or a drop back to the triangle bottom around $56,000.
As always, watch out for headlines that could impact overall market sentiment and make sure you practice proper position sizing when taking any trades!
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.