Bitcoin (BTC) has been trading in a daily Equilibrium pattern recently, which happens when an asset sets lower highs but higher lows until it breaks out. The pattern broke to the bearish side when BTC plummeted from $10,300 to $9,653 in 15 minutes on Wednesday, however, the move didn’t last long as the bears failed to see any continuation and the bulls were able to push BTC back up to $10,325.
This fakeout indicates a lack of strength for the bears and it’s usually a bullish indicator. The high of $10,325 is now the high of the Equilibrium pattern. If the bulls can break above this level, they will very likely see further gains.
A bullish breakout would also most likely push Bitcoin high enough to break above the resistance of $10,905 on the weekly chart which is also in an Equilibrium pattern. Bitcoin could easily set a new high for the year if the bulls are able to pull this off — although, we could also see BTC trade sideways for a few more days.
Disclaimer: This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.