Bitcoin (BTC) has recently touched $108,000 on Monday, having broken out of a bull flag and confirmed the break. Will $BTC now go on to set a new all-time high, and surge up to $120,000?
China trade talks and upcoming US bond auction are important for Bitcoin’s current rise
Bitcoin’s latest attempt to defy gravity may be helped by the commencement of US/China trade talks that are taking place in London on Monday. The S&P 500 is up very slightly at 6,002. If the index of the biggest 500 U.S. companies can hold above the 6,000 resistance by the end of the day, the all-time high at 6,150 will be in range.
A test of confidence in the US economy will occur on Thursday, when the U.S. Treasury auctions $22 billion in 30-year bonds. A successful auction could help to stabilize markets, while a weak one could trigger a sell-off in treasuries and send the dollar higher.
Bitcoin breaks out - $109,000 next?
Source: TradingView
The 4-hour chart for $BTC shows the strong upward surge once the price had come back to confirm the breakout from the bull flag. It can be seen that the price hit resistance at $108,000 and dropped slightly, but it is gathering again for another potential surge higher.
The next resistance is at $109,000, while the next higher high would be at $110,750. The all-time high remains at just short of $112,000.
If the price does reverse from here, the top of the bull flag, plus horizontal support at $105,000 would be a strong level that could stop any further rot. $106,000 is also very good support.
$BTC positive on daily chart
Source: TradingView
The daily chart for $BTC shows that the price is now above the tops of the candle bodies that formed the previous all-time high in December and January, at $106,000. This is an excellent base for a push higher.
There is plenty of room for the daily Stochastic RSI indicators to rise higher, while the RSI indicator has crossed up through the yellow moving average indicator, also auguring further upside price action.
$109,000 is the big level to breach
Source: TradingView
The weekly chart reveals that the main resistance is at $109,000. This is formed by the tops of two previous candle bodies, plus the last all-time high. If this level is breached and held above it could be said with more confidence that $BTC is ready for the next major push upwards.
The RSI at the bottom of the chart shows that the indicator line is continuing to head up above the yellow moving average line, while the indicator lines for the Stochastic RSI (just above) are starting to look as though they might bounce along above the 80.00 level.
All is looking very bullish for Bitcoin, and if the U.S. stock market continues to climb higher, and global liquidity keeps rising, the next few months will witness just how high this asset can go.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.