Bitcoin: Breakout is here, 1000 points more to come?

BTC leads the breakout rally in the crypto world.
Consolidates after big breakout, some more gains likely.

Manoj B Rawal Independent Analyst

Bitcoin, living true to its tag - The uncrowned King of cryptocurrencies, has led the market from the front in breaking out and living all the dusky bearish days behind it. While it is still early days to label it as a new bull market, even as technically it has surpassed the definition already as the largest coin has rallied more than 50 percent from the trough hit late last year.

BTC/USD is down six cents of a percent at $5,010 and trading in less than 2 percent range so far in a shrinkinhg volatility, which is a positive sign when it is trying to get its old glorified days back. As pointed by this author in the past (read here and here), the poster boy of the crypto world was sitting on the cusp of a breakout already and it was just a matter of time before it broke out of key resistance, which it did this week.

Now that the breakout is here, the question is what next? Next two key levels to be eyed are: $5,700 - 50 weeks SMA and then $6,200 - a big one that should rather confirm the arrival of next bull market as that is where lies a key trendline resistance which was also a big support that broke last November when Bitcoin prices crashed like pack of cards. Crossing past and sustaining this resistance would be big relief for the bulls.

BTC/USD 720-minute chart:

BTC/USD daily chart:

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Author

Manoj B Rawal

Independent Analyst

Manoj B Rawal, financial markets professional with about 11 years of experience in writing, editing and advising on stocks, currencies and fixed income.

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