Bitcoin has recently changed trend on the daily time frame, could this offer us long opportunities as the price looks to trade back to $60k?

Watch the video to learn more…

Weekly Chart

Could the price of Bitcoin rally back to $60k? Well the price action is suggesting so. Especially if you look at the bigger picture of the market. The market cap of cryptocurrencies is growing exponentially and is likely to continue to grow over the next few years as it targets the market cap of the currency markets and commodities. This means that the crypto currency market will start to act like markets we are familiar with allowing us to apply the same strategies. 

Looking at Bitcoin and applying the same trend trading theories as we would with any other market we can see that the price recently rejected a major swing level. This latest bullish rejection could move the market into a new weekly impulse phase. If this occurs we should see the lower time frame such as the daily form an uptrend making higher highs and higher lows. 

This could offer us long opportunities in the market in line with the trend. 

Daily Chart

The first yellow line highlights the last weekly impulsive phase we saw in the market. As we can see this led to an uptrend forming on the daily chart with the price forming higher highs and lows and offering long opportunities. This should occur again if we are to see another impulse phase. 

The daily chart formed a bullish reversal pattern in the form of a double bottom at the support. Now the pattern is complete with the price forming a higher high we could assume that the trend is changing and that we can begin to look for long positions at support levels. The neckline of the pattern could be the level to look for buyers to step back in if the market retraces back. 

Look for the price to form a bullish rejection of the neckline which could offer short term trading opportunities as the price looks to trade back to $60k.

Did you see our previous update? If not, why not check it out here.

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About The Author

Jonathan Kibbler

Jon Kibbler, our Senior Market Analyst, boasts over a decade of trading experience. He specializes in dissecting the intricacies of financial markets and sharing his expertise with precision. Jon’s insights have been featured at renowned events and platforms like Coindex, Forex Analytix, and Forex.com.

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