BTCUSD has finally broken above 61.8% fibo retracement level on 5th Oct; the area 50800 was the upper neckline to the head and shoulder pattern formed on the daily chart that the crypto broke up and invalidated the structure. The bullish impulsive move was formed a 5 wave structure in the four hourly time frame and is looking to provide us with a touch down at 59600 - 60000 as its next targeted destination. The pair rose to more than $56,000, which was the highest it has been since May this year. Along the way, it moved above the important level at 55,000. It has also formed a bullish flag pattern and is above the 25-day and 50-day moving averages. Therefore, the pair will likely keep rising as bulls target the next key level at 60,000. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Bitcoin price has formed an ascending parallel channel on the 4-hour chart since October 6. The leading cryptocurrency has now sliced above the upper governing trend line of the pattern, hinting that it is ready to target 60000. The upside target given by the prevailing chart pattern is at 60000 if Bitcoin price manages to secure stable support above the upper boundary of the parallel channel at 57,035, coinciding with the 78.6% Fibonacci retracement level. Should this level fail to hold, Bitcoin price may test the middle boundary of the governing technical pattern at 55649 as a line of defense, corresponding to the 20 four-hour Simple Moving Average (SMA). Further support may emerge at the lower boundary of the parallel channel at 54248, strengthened by the support line given by the Momentum Reversal Indicator (MRI).

BTCUSD Has Set The Stage for Another High

Oct 12 2021