Bitcoin is due for a breakout and we all know this, but the big questions are how can we take advantage of this breakout to make money and where will Bitcoin breakout to?
In this Bitcoin analysis, I will be helping you make sense of the current price actions developing on the Bitcoin chart. I will also be pointing out the best levels I am looking for entries and how I plan to take advantage of the coming price surge in Bitcoin.
Is Bitcoin Bullish Or Bearish?
The most common question I am seeing a lot of Bitcoin traders asking right now is “What trend is the Bitcoin Price trading In?”
And the simple answer to this is Bitcoin is still in an uptrend, but we are seeing trend weakness and a potential price bull back before we continue on the bullish rally.
However, the problem is pinpointing exactly when that pullback will occur. Enter too early, you will get burnt as you watch price spike upwards taking you out at a loss, enter too late and your reward will be very little with potentially larger risk.
Important Chart Partners And Levels I Am Watching
Bitcoin is currently trading sideways within an ascending channel. And right now, the price is testing the base of the channel.
This base channel is very important to Bitcoin traders because it as served as support on numerous occasions in the past.
A break below this ascending channel support could see the Bitcoin price surging towards the previous highs.
However, a break below the support could mean more weakness for Bitcoin in the short term and a potential price dump to the $10,500 support level.
My Entry Criteria For A Short Term Trade
There are two important levels I am currently watching to enter a Bitcoin trade.
The first level is the $11,400 support region. If the price broke and close below this level, then there is a high probability we might see a deeper retracement occur in the coming days.
The second level I will be watching out for is the $11,900 resistance level. A break of this resistance could signify that the Bitcoin price could potentially ralley back up to the top of the ascending channel.
But as for right now, I will stand aside and wait for Bitcoin to decisively move in one direction befor I even consider to start looking for potential entries and trade setups to take.
Volume Indicator Showing Signs Of A Coming Price Surge
One indicator you should keep an eye on is the volume indicator. This indicator is currently showing that the Bitcoin trading volume is contracting.
And everytime we have seen Bitcoin volume do this, there is usually a price surge that follows as Bitcoin comes out of condolidationand begin trending again
This is very important for my Bitcoin analysis because it tells me that I should anticipate a massive Bitcoin move soon.
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.