Bitcoin Breaks Out to the Upside
After weeks of downward and sideways movement, bitcoin has finally experienced an upward breakout. The third consecutive green candle has propelled bitcoin past its downward trend line that has been in force since July 13. Bitcoin has successfully retested this breakout and is now facing the next resistance level at around $27,130.
This upward movement has allowed bitcoin to remain within its long-term ascending channel. If it can overcome the current resistance, it may have the potential to move towards the top of the channel.
Potential Head and Shoulders Pattern
However, there is a potential head and shoulders pattern that could be forming. The left shoulder was formed in mid-May at $31,000, followed by the head in mid-July at just under $32,000. With the neckline at $24,800, a measured move to the downside could bring bitcoin back down to $17,800.
This negative scenario would break the long-term ascending channel that bitcoin has been following. It seems more likely for the price to move downwards based on this chart pattern.
Bitcoin Bull Run Still Intact
Despite the potential downside move, it does not negate the overall bitcoin bull run. There is a healthy price structure built below bitcoin’s current level, with strong supports at $26,000, $24,800, and $19,500. Even if there is a further fall below these levels, it would be necessary to breach support at $16,000 and $10,200 to truly negate the bull market.
Ethereum Leading Altcoins
Ethereum holds a crucial role in leading the rest of the cryptocurrency market out of its current slump. It is showing signs of doing just that, with the fifth consecutive daily green candle expected to print by the end of the day.
Ethereum has reached its own resistance level at $1,680, which it first encountered in February 2021. Flipping this level into support would be a significant achievement. The next crucial level to watch is $1,900, which if broken, could unlock the path to higher prices as it would pierce through the top of a bullish ascending triangle that Ethereum has been in since June 2022.
Hot Take: Bitcoin and Ethereum Face Resistance Levels
Bitcoin is finally breaking out to the upside after weeks of downward movement. It has overcome its downward trend line and is currently facing resistance at $27,130. On the other hand, Ethereum is attempting to flip its resistance level at $1,680 into support. Breaking through this level could lead to higher prices for Ethereum.
While there is a potential head and shoulders pattern for bitcoin, it does not negate the overall bull market. Bitcoin still has strong support levels below its current price. Ethereum’s performance is crucial in leading the rest of the altcoins out of their slump.
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