Bitcoin looks to have temporarily broken out of its descending channel (red solid lines) over the past few hours. But many eyes are wondering if BTC will retain its positive trend.
On the one hand, a normalization around a round number like $55K would be fairly common leading to a potential to jump out to near $56K before potentially retracing back to the trend line (as is common during breakouts) and hence solidify a breakout.
On the other hand, volume is not strong and hidden bearish continuation divergence still exists on RSI, indicating that the price might head back into the channel and either continue downward (toward 40-44K) or form a more forgiving descending channel (dotted red lines) approaching near $47K.
It is truly anyone's guess in my opinion as the daily chart shows fairly positive trends and may continue upward upon zooming out, but the bearish scenario definitely looks to be in play unless further price increases continue over the next day(s).
But please don't take this as advice, particularly with all the volatility occurring, as this is not financial advice but solely my opinion.
But definitely like or comment if you agree or have similar or different thoughts!
On the one hand, a normalization around a round number like $55K would be fairly common leading to a potential to jump out to near $56K before potentially retracing back to the trend line (as is common during breakouts) and hence solidify a breakout.
On the other hand, volume is not strong and hidden bearish continuation divergence still exists on RSI, indicating that the price might head back into the channel and either continue downward (toward 40-44K) or form a more forgiving descending channel (dotted red lines) approaching near $47K.
It is truly anyone's guess in my opinion as the daily chart shows fairly positive trends and may continue upward upon zooming out, but the bearish scenario definitely looks to be in play unless further price increases continue over the next day(s).
But please don't take this as advice, particularly with all the volatility occurring, as this is not financial advice but solely my opinion.
But definitely like or comment if you agree or have similar or different thoughts!