- The bitcoin price rally has been proven unstoppable, with bulls pushing for new highs past the $400 and $450 psychological resistance levels.
- Bitcoin price even completed an upside break past a double bottom formation visible on the daily time frame.Bitcoin price could be in for much more gains, as three bullish candles formed after the confirmation of a long-term uptrend signal.
Aiming for $500?
No signs of a major correction or even a slight pullback are materializing for now, which suggests that bullish pressure continues to build up. If so, bitcoin price could have its sights set on the $500 level next.
Note that the double bottom formation spans around $200-$380, which suggests that the upside breakout could have enough energy to move until the next ceiling at $550.
The last three daily candles formed a three white soldiers pattern, which is a very bullish signal for Japanese candlesticks. Another daily candle close past the latest highs at $455 could cement the bull run for bitcoin price.
Stochastic has been indicating overbought conditions for quite some time so profit-taking could happen at any moment. However, the uptrend has been so strong that any profit-taking activity might simply inspire a quick correction before the bitcoin price climb resumes again.
RSI is also indicating overbought conditions but hasn’t turned lower, which means that there’s still some room for more gains. A selloff from the current levels or the nearby resistance points could spur a retest of the double bottom neckline around $350-400.
Intraday support level – $420
Intraday resistance level – $500
Indicator settings:
- SMA 100, SMA 200
- Stochastic (8, 3, 3)
- RSI (14)Charts from TradingView
