Breakout in Bitcoin ImminentBitcoin has been consolidating since the cryptopocalypse in January, but precipitously so since early September. Consolidation of volatility always portends a breakout or breakdown. Which is it going to be?
Bitcoin has respected $5820 as a hard lower bound. It tested this and emphatically rejected it back in June. This level corresponds to a Fibonacci extension from levels anchored back in 2017, from which we've anchored our current Fibs.
Even if we see a breakdown, it will be hard to breach this unless there is serious downside momentum. But if so, we have a serious vacuum zone until the $3000 handle.
A nice level around $6700 or so has been respected since March. This one again corresponds to an important Fibonacci level, another extension from the same levels discussed above. It currently seems to serve as the apex of a flag pattern that has been in the making for the last month or so. The fact that BTC has respected what seems to be an absolute lower bound though it has tested it many times with intense bear momentum, suggests with high probability that we will see a strong bull breakout. If so, we can expect resistance from Fibonacci levels at: $7800 and $8533. It seems like a stretch right now, but $9100 will offer significant resistance and will be a great price target. As the 50% Fibonacci level, it is quite significant.
