Bitcoin price positioned for major bullish breakout towards $69,000
|- Bitcoin price is still recovering from the December 5th flash crash.
- Buyers have been able to keep prices above a capitulation zone – thus far.
- Significant bullish expansion moves ahead, but an equally bearish drive lower could occur if bulls fail.
Bitcoin price action has been flirting with a final support level that could see prices drop from $47,000 to $37,000 without much effort. The daily candlestick chart warns of continued bearish momentum, but the Point and Figure chart shows a path to rally Bitcoin higher.
Bitcoin price positioned to surprise short-sellers
Bitcoin price has been testing its final support zone near the $47,000 value area for the past twelve trading days. Bulls have become increasingly nervous, but a significant amount of buying and selling has occurred in the $47,000 to $49,000 price ranges. So much so that it is very close to creating a new 2021 Volume Point Of Control (prior was at $57,000.
BTC/USD Daily Ichimoku Chart
The red highlighted zone on the candlestick chart represents a capitulation zone where the volume profile things out, and prices could travel through very quickly. If bulls fail to hold $47,000, a return to the $30,000s is almost inevitable. However, the Point and Figure chart may tell a different story.
The $1,000/3-box reversal Point and Figure chart show that a bullish reversal pattern is developing. The hypothetical long idea is a buy stop at $50,000, a stop loss at $46,000, and a profit target at $69,000. The profit target is derived from the Vertical Profit Target Method in Point and Figure Analysis. A two to three-box trailing stop would help protect any implied profits.
BTC/USD $1,000/3-box Reversal Point and Figure Chart
The trade is invalidated if a new column of Os prints before the entry has occurred.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.