Bitcoin Could Experience a Major Breakout in its Bull Market
If you haven’t realized it yet, Bitcoin’s price might be on the verge of a significant breakout into its most bullish phase yet. After spending over a year in the $20,000 range, the price of Bitcoin is now back above $31,000. In fact, if it surpasses the current 2023 record by less than $1,000, it could trigger an impulse phase for the cryptocurrency.
The Impulse Phase: The Most Bullish Point of a Trend
An impulse phase is the most bullish point of any trend and occurs when certain psychological price thresholds are surpassed. During this phase, price begins to rapidly increase, causing the Relative Strength Index (RSI) to reach overbought levels. However, cryptocurrencies like Bitcoin can remain overbought for extended periods during strong trends.
Currently, the daily RSI has entered overbought territory, with the 3-day RSI following closely behind. Once the weekly RSI also reaches overbought levels, there will be no stopping the bull run. In the past, when this happened, Bitcoin surged for nearly 90 days without a significant correction.
Trading during the Most Bullish Phase
Additional evidence that Bitcoin is entering its impulse phase can be found using Elliott Wave Principle. BTCUSD might be entering its third wave, which is always impulse in nature. Impulses drive market participants to take action and buy or sell the asset. Since Bitcoin is currently in a bullish trend, the impulse phase would move upward.
A break above the current 2023 high would confirm the potential third wave. However, if Bitcoin falls below the June 2023 low, it would invalidate the currently bullish price pattern.
Anticipating Minimal Pullbacks
If Bitcoin is indeed entering an impulse phase, there won’t be many pullbacks similar to what occurred in late 2020. During that time, BTCUSD surged from $13,000 to $42,000 without significant corrections.
Hot Take: Bitcoin Primed for an Impulsive Breakout
Bitcoin’s recent price movements suggest that it could be on the brink of a major breakout into its most bullish phase yet. With the price surpassing $31,000 and potentially entering an impulse phase, there is a strong chance that Bitcoin’s bull run will continue with minimal pullbacks. Traders and investors should pay attention to key indicators like the RSI and price patterns to anticipate further price increases. If Bitcoin manages to break above its current 2023 high, it could signal a significant upward trend. Keep an eye on these developments as they could shape the future of Bitcoin’s market.
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