A Bitcoin triangle formation on the 1-hour chart teases a bull cycle with a breakout run potential. Will this result in a 17% surge to the $68K level?
Bitcoin’s growing volatility in a strictly sideways lane over the last few days seems to have hit an end. With growing underlying demand, the indicators and derivatives market anticipate a bullish outburst will come shortly.
Will this Bitcoin breakout run result in a massive surge beyond $65K? Let’s find out.
Bitcoin’s Changing Dynamics in 1-hour Chart
In the one-hour chart, Bitcoin shows a consolidation move after a price jump to the $61,000 mark. The sideways continuation leads to the formation of two converging trend lines that form a triangle pattern.
Bitcoin is resting at the support trendline and has formed a streak of four bearish candles that accounts for a price drop of 1.30%. However, in the last hour, Bitcoin has recovered 0.20% and is trading at $58,812.
As Bitcoin takes support at the trendline, the chances of a bullish reversal are increasing. Based on the trend-based Fibonacci level, retraced over the recovery rally last week from $49,700 to a peak of $57,470, Bitcoin is taking support at the 50% Fibonacci level at $58,676.
Furthermore, the one-hour RSI line shows a lateral movement near the halfway line slightly below it.
Even the Bollinger bands on the 1-hour timeframe converge, reflecting an increase in tension. Thus, the chances of a sharp move in Bitcoin are increasing.
However, since the consolidation started near the support trend line, the RSI line has revealed a bullish divergence. This increases the possibility of an uptrend continuation and an overhead trend line breakout.
Will Bitcoin’s Breakout Surpass $63K Resistance?
A bullish breakout of the overhead trend line will challenge the 78.60% Fibonacci level at $61,095. In doing so, Bitcoin will reclaim the psychological mark of $60,000. With the additional momentum, the Bitcoin price will likely continue to rally and challenge the peak of $62,970, the 100% Fibonacci level.
Following the breakout, a minor retracement for a retest is possible. The retest can find support at two levels: the 78.60% Fibonacci level at $61,095 or the broken trendline closer to the $60,000 psychological mark.
A post-retest bull run will be the perfect buying opportunity for the sideline traders. The uptrend is likely to surpass $63,000, and a clear path is visible to the $68,713, the 161.80% Fibonacci level.
Derivatives Shift to Bullish Side
According to recent data from CoinGlass, $159.62K worth of Bitcoin short positions were liquidated in the last hour. In contrast to the $7.49K worth of long liquidation in Bitcoin, liquidation data reveals a stronger bullish side. Hence, the changing dynamics in the derivatives market bolster the possibility of a bullish breakout in Bitcoin.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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