Is Bitcoin About to Break $8.3k?

Is Bitcoin About to Break $8.3k?

Bitcoin is continuing to consolidate as we reach the middle of the week. Sideways chop continues and volume is decreasing for now. After a quiet week, Bitcoin is looking like a time bomb set for another explosive move. On the daily chart above, the sequential indicator is currently on a green 3 of 9 candle. Therefore, price is likely to have more upside potential throughout the rest of the week.

4 Hour

Currently, Bitcoin’s 4 hour chart is on a red 3 and the short term chop remains neutral. There are many interpretations of Bitcoin’s 4 hour chart above. For example, the bulls are seeing price forming an ascending triangle (white) at roughly $8.3k. Ascending triangles have a 70% probability of breaking to the upside. At the same time, many bears are seeing a double-top forming at $8.3k which will likely experience another rejection. Bitcoin’s 4 hour chart is a quality example of how subjective technical analysis can be at times. Above all, patterns are meaningless until there is a confirmation.

Shorts

As price moves sideways, shorts are beginning to stack up. If price action continues to stagnate and more shorts enter the market, they may serve as fuel to pump price higher if a short squeeze were to occur around $8.3k.

Why $8.3k Is a Critical Level

After increasing to $8.3k, Bitcoin could have been rejected back into the $6k range. However, previous resistance has now formed support at roughly $7.8k. Moving forward, $8.3k is a critical level for Bitcoin because there are no historic resistance levels anywhere from $8.3k to $9.4k. $9.4k is an even more important level because it aligns with the 0.382 fibonacci level which will ultimately serve as a turning point in the macro trend. If price somehow breaks above $9.4k, there’s a decent chance Bitcoin will make new all-time highs. Conversely, if Bitcoin is rejected at the 0.382 fibonacci level, it is likely that the bear market macro trend will continue for the foreseeable future.

Cryptocurrency News (Binance Coin)

Binance coin (BNB) has been resilient and continues to make all-time highs despite the recent hack of 7,000 Bitcoins ($55m USD). Also, users cannot short Binance Coin on the exchange, an obvious benefit to Binance Coin as well as other low market cap cryptocurrencies such as Ravencoin. Overall, it appears the market is still confident in the world’s largest cryptocurrency exchange. That being said, there is a classic saying from crypto veterans, ‘There are two kinds of cryptocurrency exchanges: the ones who have been hacked, and the ones who will be hacked.’

Conclusion

Bitcoin continues to chop around $7.8k as volume decreases. Indicators are fairly neutral and the ascending triangle at $8.3k is a bullish signal for price action in the short term. Short term resistance remains at $8.3k while critical macro resistance remains at $9.4k.

Disclaimer: I am not a financial advisor. Nothing in this article should be considered financial advice. Please do your research independently and make objective decisions. The author of the article owns Bitcoin.