- Bitcoin price has retested and broken past a critical resistance zone
- BTC price is currently breaching the 6-hour parallel trend channel
- A break below the $40,000 will invalidate the bullish thesis
Bitcoin price has investors shocked as it has been violently surging on the intraday time frame.
Bitcoin price has strong bullish confluences
Bitcoin price has recently breached the 6-hour parallel channel for the 4th time this week. The volume pattern with the most recent 6-hour chart suggests significant Smart Money interest in BTC.
Today's sudden surge to $43,834 may be a shocker to some investors, but Bitcoin price does not look like it will be slowing down soon.
It was mentioned in Monday's thesis that a break above the previous support zone at $41,000 could be an early confirmation for traders looking for an entry. Ultimately a breakout away from the support zone would be the safest entry.
The scenario played out textbook-like early Wednesday morning as the BTC price charged forward to $42,777. Now, the Bitcoin price has a few strong confluences. The breach into the upper end of the parallel channel at $43,834 with high volume is very bullish. Secondly, the low volume consolidation above the median parallel trendline is also optimistic. Traders should expect more consolidation followed by larger candlesticks to push Bitcoin prices towards $45,000 this weekend.
BTC/USD 6-Hour Chart
Still, market makers could attempt to flex their power on the 6-hour trend channel, so an explicit invalidation for Bitcoin price is essential. The invalidation for the thesis will be a break below $40,000, the lower end of the previous support zone. Should this happen, BTC price will likely test $38,000 and $36,000, representing an 18% correction from the current levels.
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