Finally, after weeks and weeks of waiting for the Bitcoin price to make a move, today we saw the price break out of the falling wedge pattern it has been trading in for a while now.
This bullish move also triggered a sell-off in the altcoins market, with almost all altcoins giving back the gains they have been gathering for the past few weeks.
I talked about this potential sell-off and my future outlook for the altcoin market in my previous Bitcoin analysis titled “Must Read: Bitcoin Dominance Crashes To 61%. End of Altcoin Rally?“
For this Bitcoin analysis, I will be focusing on this current bullish breakout in Bitcoin. I will be analyzing the cryptocurrency and giving my honest opinion on what I think about this bullish move and where my profit targets will likely be.
Trading The Current Bitcoin Breakout. Is The Bullish Trend Fully Back?
It is important to remember that, while the Bitcoin price might have broken out of the falling wedge pattern, this in no way signifies the return of the Bitcoin bullish trend. Because the Bitcoin price is still generally trading within a rising triangle.
And while this is a bullish pattern, there is still a high probability that the pattern might fail and break to the downside.
The only way to eliminate this downside potential and to fully return back to uptrend is if the Bitcoin price breaks and closes above that supper resistance that has been holding the price back for a while now.
Target Levels For This Falling Wedge Breakout
My main target level for this bullish breakout is the $10,000 resistance region. This region also serves as the top channel of that larger rising triangle pattern Bitcoin has been trading in.
I believe the Bitcoin price will find a lot of resistance in this region. And if the Bitcoin price is unable to break through, then we might see a price reversal back to the base of the channel.
Red Flags and Managing Risk
While there is a very high probability that this bullish move will continue heading higher, for now, I, however, cannot assure you that the price will get to the $10,000 region before reversing.
And the reason for this is because of the low bullish trading volume that is currently pushing price higher.
If this bullish volume does not increase in the coming days, we might begin to see this bullish move get exhausted and bearish pressure return to the market.
So, it is very important you manage your risk properly to avoid giving back your gains if this move reverses prematurely.
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.