On the Cusp of Bitcoin’s Next Move

Bitcoin has evolved quite a bit from its early days on the scene.

I first started trading bitcoin around 2016 and the volatility was seriously intense.

There was this period between March to June 2016 where bitcoin doubled in price, going from about $385 to over $770.

At the time, this was an incredible thing to see.

But of course, a market that can double in a matter of weeks or months can also experience vicious selloffs too. That’s exactly what happened when bitcoin peaked in June and then proceeded to sell off by 45% in just 45 days.

Seasoned cryptocurrency traders know that volatility is simply the cost of doing business if you want to profit from bitcoin’s big moves.

Right now, we’re about to see another big move.

Bitcoin’s most recent top was established on April 14. Since then, it has gradually made its way lower.

How bitcoin has traded lower is what’s caught my eye and why we might be on the cusp of another great bullish opportunity.

Let me walk you through a price chart of bitcoin below…

The key feature of this price chart is the parallel channel that bitcoin has been trading in from April 14 to June 15.

You can see how this channel did a great job containing the price action during this period of time. You’ll also notice how bitcoin has recently broken strongly out of this channel.

The way bitcoin has traded within this channel is typically characteristic of counter-trend price action.

In other words, breaking out of this structure is a strong signal that bitcoin is getting ready to trade higher once again.

That’s exciting news for bitcoin traders and investors who have been waiting for the crypto markets to start seeing the same kind of gains that tech investors have been recently enjoying.

To be clear, I’m not saying that this is the start of a new move towards all-time highs in bitcoin.

But at the very least, this should be a move towards the next resistance zone which spans from approximately $31,500 to $34,500.

That’s about a 20% move from current prices of around $28,000 or so. The key level keeping this scenario alive is the low from June 15, which comes in at $24,750. A break below this level would mean going back to the drawing board to figure out what else might be going on with bitcoin.

Either way, I’ll be sure to update you right here in Market Minute.

Happy trading,

Imre Gams

Do you actively trade bitcoin?

Let us know your thoughts – and any questions you have – at [email protected].