Technician’s Take: Bitcoin Surges With Higher Target Ahead
- Blue chip cryptos are outperforming Nikkei, S&P500 and Eurostoxx index futures by 10X over the past week.
- Upside expansion of Bitcoin’s price continues, with the next key level at US$52,350.
The average gain since last Monday of Nikkei, S&P500 and Eurostoxx index futures is 1.41%. But blue chip cryptos (ETH and BTC) have averaged more than 10x over the same time period at 14.5%. The key support/resistance line at US$45,822, going back to last December, has been breached to the upside decisively.
In the sub-window you can see that RSI is moving smoothly and incrementally higher and currently stands at around 70.5. The highest level in the last 12 months was 76.4 on 15 October 2021 which still resulted in a 17% advance. However this was when a longer cycle was actually topping out. Currently the longer cycles are still rising in which case the preferred view is that RSI (representing upside power here) still has room to breathe and should drive price higher.
There is a potential pause zone around US$48,900, which is the top of the first channel out of the 23 January low. This however is subordinate to the next real target of US$52,350, which represents key support/resistance going back to last September.
This level neatly captures the entire price top structure between October and December last year. It’s a significant level. The preferred view is for an upside breach and continuation, but don’t be surprised if price takes a breather here first.