The Bitcoin bullish reversal we talked about in our previous BTC analysis Bitcoin Getting Ready For A Massive Move! Rally To $42k? might have started!
Right now, we are seeing the BTC price finally breaking out of this Ending Diagonal pattern in the 4-hour timeframe and rallying higher.
However, there is still one key resistance the Bitcoin price needs to break through to fully confirm the start of this bullish move to $42,500 in the coming days.
In this Bitcoin analysis, we will be breaking down the key levels we are currently watching as well as the importance of the Ending Diagonal pattern to this current rally in Bitcoin.
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Bitcoin Ending Diagonal Pattern
The key pattern we are watching for Bitcoin is the Ending Diagonal Pattern currently playing out in the 4-hour timeframe. This pattern is a strong bullish reversal pattern that indicates that we might be seeing an end to the bearish sell-off in Bitcoin end very soon!
We can already see the bulls coming back into the market as Bitcoin is beginning to rally. This price rally is a good sign because it indicates that a lot of traders are watching this pattern and looking to get involved in this reversal in the price of Bitcoin.
However, for us to confirm the validity of this bullish rally, we need to see a clear price break and close above the $39,143 key resistance level in the 4-hour timeframe.
Bitcoin $39,143 Key Resistance
This $39,143 key resistance is the final level the Bitcoin price needs to break to confirm the start of the BTC price rally higher.
However, this 4-hour level is still holding strong and traders should be cautious of this.
And the reason for this caution is because;
If this move higher in BTC is a fakeout, there is a very high probability that sellers might take advantage of this $39,143 resistance to return to the market and push prices lower from here
This makes it very important for us to see our bullish breakout and probably a price retest above this $39,143 key resistance before entering any buy trade on Bitcoin.
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