Last Bitcoin (BTC) Dip Before New All-Time High?

As the S&P 500 and the Nasdaq continue to make all-time highs with unfailing regularity it may now be Bitcoin’s turn to make its own new high. That said, the $BTC price may need to return lower first in order to retest previous price structure.

Back to test the trendline breakout?

Source: TradingView

The $BTC price is holding up nicely. There was always going to be a downward impulse after $BTC had risen over the weekend in spite of being in quite an overbought state. However, the bulls won’t be keen to let the price go too far down and allow it to take hold underneath the major trendline again. Therefore, some gentle to and fro into a narrowing corridor between resistance and the rising trendline is just what the doctor ordered.

Of course, things are never that simple in trading, so both bears and bulls have to be alert for any eventuality. Nonetheless, as it stands, a reasonable scenario is for the price to chop around before subsequently retesting the major trendline, and also perhaps the neckline of the W pattern. By then, the 8-hour, and maybe even the 12-hour Stochastic RSI indicators will have had time to reset before rising again and signalling renewed upside price momentum.

No major resistance levels left

Source: TradingView

The daily chart for the $BTC price reveals that there are several horizontal resistance levels between the current price and the 8-year ascending trendline at the top. With that being said, none of these can really be considered as major resistances. Therefore, when $BTC goes on its next rally the main issue could be if it gets into an overbought state, as is the case currently.

As far as support goes, the major trendline has become a rising base to which the price can come back down to. In fact, the price will very likely come back to this trendline in order to test the recent breakout, as well as the neckline of the W pattern.