Bitcoin (BTC) is approaching a six-month high. The movements around this level will be decisive.
Bitcoin (BTC) is in its best situation for six months
The queen of cryptos has recovered 50% of its value since the start of the year. The bullish momentum was strong enough to see it break through several resistances. Currently, bitcoin (BTC) is trading around $24,500 and is approaching a six-month-old high. This is the August high at $25,200. It is highly likely that the price will break through this hurdle. The breakout of this level could mean the end of the bear market from the historic peak. However, you will have to be careful, because a false breakout could also arise.
Indeed, there is an RSI divergence on the daily scale. This is a bearish signal that the rally at the start of the year is losing momentum. Additionally, the dollar is starting to gain strength. This should weaken other assets like bitcoin (BTC). If a large volume will assist the breakout of the $25,200 level, a false breakout could possibly be considered. In this case, we could short the BTC as in the analysis of February 16 on the daily scale. The entry point for this short position is therefore above $25,200. However, we will have to wait for further confirmations.
Analysis on the H1 scale
On the H1 scale, we see the presence of an ascending triangle. In most cases, this is a bullish figure. However, bitcoin (BTC) broke through the lower part of the triangle on Sunday. Thus, one could consider this as a bearish signal. Then, there is also an RSI divergence on this scale. According to these bearish signals, one could take a short position on the short term.
However, it will have to wait if the price makes a top higher than $25,200 on Tuesday. If this were the case, one could take a short position from this top. If Tuesday’s session bottoms out lower than today’s, our bearish scenario will be invalid. In this case, one could buy bitcoin (BTC) at $22,800.
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