The largest market cap holder of the cryptocurrency is Bitcoin, and it has started to rally. The tight range of 43,000 to 29,000 is almost being pierced. The influx of capital from institutions is causing the major rally prospects and we may see a continuation towards 50,000 and upward soon.

- Market structure: After much battle between bears and bulls, the bulls finally take control. BTC was in a tight range in an accumulation phase and kept on rolling back and forth. Right now, what we see is, BTC has broken the range of $42,000 upwards with force, and continuous bullish candles. As it is continuing going bullish, we have to wait for the retest at the support level of $42,000.

- Trendline: Earlier, the descending trendline was pierced and market continued to validate the breakout buy with candles opening and closing above it. The other trendline we have, is the ascending trendline which has been retested by BTC. If this trendline is pierced for breakout sells, then we would wait for the support level to be tested. The trendline breakout sells will only be activated once we break the support.

- Retracement: After the price leaves the range upwards, we will wait for the retracement to hop onto the long positions. The area of golden retracement is estimated around 38,000. This retracement is in confluence with the support level.

- EMA's: EMA 50 and EMA 200 almost had a bearish death cross but then, diverged at the exact point. This reflects BTC is going to continue its bullish impulse and we are still in a bullish direction. BTC is continuing with the bullish death cross and at the support level, we may find EMA 200 being retested. This will give us an additional factor to go long.

- RSI/CCI: Both the oscillators are in a bullish region. RSI is at 66 and CCI is at 124. There is still some room for both the oscillators towards the upside levels of 75 and 150. CCI earlier dropped back from the over bought region to neutralize the bullish momentum.

Bitcoin is parabolic with it moves. Its advisable to trade it in spot positions rather than leveraged ones. The range break has already taken place. With that, the only thing we have to do is to wait for the market to retrace further down so we take a long position. If daily candles start closing below the support level, we will close our positions.

Bitcoin to buy at 38,000-40,000

Aug 21 2021

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