Yesterday, we saw momentum come into the Bitcoin market as the Bitcoin price finally broke out of the ascending triangle and smashed the $12,000 weekly resistance level.
This level as been so important because the Bitcoin price has been trading under it since the start of the week.
However, Bitcoin saw momentum dry up and there was no bullish follow-through in the Bitcoin price after this breakout. And this as left a lot of traders worried and bearish on Bitcoin for the short term.
In this Bitcoin analysis, I will be analyzing the Bitcoin price and talking about this dying momentum. I will also be pointing out an important pattern that is currently developing on the Bitcoin chart and what I believe it means for the Bitcoin bulls.
The Importance Of The Follow Through Momentum
The “bullish follow-through” factor is very important to Bitcoin because the Bitcoin cryptocurrency is very volatile, and every time we see a price breakout, there is always a massive bullish runup that follows.
And this theory can be confirmed from the last time Bitcoin broke through an ascending triangle.
We saw a massive bullish run that went on for days and pushed the Bitcoin price to over 20% to 30% higher. Unlike this current bullish breakout that as practically gone nowhere since that initial price surge.
What Does This Mean For The Bitcoin Price?
I will be talking about two price scenarios that might come into play in the coming days.
- Bitcoin Retesting The Top Channel Before Pushing Higher
In this analysis I expect Bitcoin to pull back and test that top of the ascending triangle channel, effectively converting that resistance to support before pushing higher.
The important level I will be watching is the top channel line. A break and close below that support could see more weakness coming into Bitcoin and the Bitcoin price falling lower to either the base of the channel or even past it to the $10,000 region in the coming days.
- Bitcoin Trading In An Ascending Channel
My second outlook for the Bitcoin price is the probability that Bitcoin is currently trading in an ascending triangle.
If this is true then Bitcoin is currently testing the top of the channel and there is a high probability that we might see a price retracement back down in the coming days.
What Is The Best Action To Take Right Now?
The best action to take right now is to stand aside and wait for more price confirmation in the coming days.
This way you don’t get burnt if the price decides to reverse and become bearish or if Bitcoin continues to range and trade sideways.
To gain more information on how to partake in this coming Bitcoin Bull run and trade this cryptocurrency, you can read my How To Trade Bitcoin Guide. You can also check my top list of Best Bitcoin Exchanges To Trade With.