Well looks like bitcoin
has broken out of its descending trend-channel (red channel), at least for now. I'm still skeptical of btc's long term outlook and still think fundamentally this market is over-priced, but you can't ignore what price is doing right now and technically price has broken-out, albeit on very low volume
. In fact the anemic volume
should be a concern for the bulls as this recent rally has actually seen volume
dropping off, which isn't a good sign. Although this could be the start of a new bullish trend
(blue channel), price still has to break the previous resistance at $11,700 to avoid forming a double-top structure and if we can clear that hurdle then heavy resistance waits at the nice round $13000 level.
A look at the daily chart:
Price is looking bullish
with that daily close above the descending trendline
, but look how low the volume
is on that breakout. A legitimate break-out should see volume
increase not fall off like that. This recent rally and price structure is encouraging for those that are long this market, but plenty of resistance still awaits up ahead.