The Bitcoin market is making a steady rise to the $420 resistance zone as it is currently trading at $416.12 on Bitstamp. In our previous Bitcoin technical analysis we mentioned that if no major selloffs occur the price will keep climbing, so far the market has proved that theory to be true. How much longer the price will rise depends on how well support will hold at $416. While the monthly trend is bullish, looking at the 24 hour chart we can see the price slouching after a high of $420 – an infamous resistance zone.
Chart from themerkle.com/price
So far the support at $416 seems to be holding strong as the RSI indicator jumped as the price rebounded off of the support line.
Looking on tradingview there is an overwhelming amount of bullish charts. Djthistle01 suggests that BTC might be exhibiting whats called a Short Squeeze – a situation when a heavily shorted market moves up sharply causing all current shorters to close their position and add to the upward pressure. Djthistle01 provided the following chart:
Chart from tradingview
With such a massive bear sentiment out there one has to then look at the bullish outcomes for squeezing all of the over zealous shorters. The house has to win, not the table, thus is only makes sense that if we are flirting with 60% short position that it has to go up….right?
Whether the above theory proves to be correct or not only time will tell, but one thing is for certain, all signs are pointing to an upcoming breakout. This brings us to our next idea, suggested by EliX from tradingview is a potential massive megabull cycle. Using Fractals, EliX provided the following chart which in short shows that if the price happens to reach $445 by March 27th then the momentum will be so high that the price will be expected to rise much higher.
Chart from tradingview
After rearranging the fractal and aligning it properly with our current triangle we can see that were spot on the last pump within the triangle before we break out of the triangle. Initial top of triangle is $435 on Bitfinex and if all goes to plan we will blow past it to $450-448 then go back down to retest $426-421 before the megabull picks up steam and moons. -EliX
Conclusion
Intraday targets to watch out for are $416 support and $420 resistance. If no major selloffs occur in the coming hours the market should retest $420 again, otherwise if $416 breaks the next support down is the $400 zone. Keep an eye out for any major news positive or negative, as with the current low volume any major event can affect the price dramatically.
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