The $BTC price has found strong support on Monday, and a decent bounce has ensued. Are the bulls about to take the price back to the top of the bear flag and a possible breakout? Is $80K a doable target for this next potential leg higher? Next ascent to the top of the bear flag? Source: TradingView The 4-hour time frame chart shows that the $BTC price has not only bounced nicely from the strong $74,000 horizontal support level, but also from the rising trendline that has provided support for the price since the bottom of the bear flag. This means that the rising trend is intact and that the bulls could be about to have another crack at the top of the bear flag. The Stochastic RSI indicators are just rising from the bottom so it would appear that the path is clear for this next assault. On a cautionary note, if bad news comes out of the Middle East conflict, the price could turn back around. The bear market trendline could then act as support and a retest could take place, which would be a perfectly reasonable thing to happen. Bulls fighting to change the downward trend Source: TradingView The daily time frame reveals the struggle that is going on as the bulls continue to try and change the downward trend. In their favour is that extremely important break of the almost 7-month bear market trendline. Of course, there is the possibility that the price will come back to test and confirm this trendline, but this is speculation at this point. The two simple moving averages are still playing their roles. The 50-day SMA (blue line) is angled up and could cross back over the green 100-day SMA in the near future . The 100-day SMA is providing support for the $BTC price , which is another reason a decent bounce could occur from here. In the Relative Strength Index, the indicator line is chopping upwards within the confines of the rising channel. While the indicator line was recently rejected from the descending trendline (bold, blue line), it looks like there could be another attempt to break up and through . This trendline begins in November 2024, so a breakout would be of huge significance for the bulls. Bullish signs in the weekly time frame Source: TradingView Sometimes it’s best to keep things very simple in technical analysis. Otherwise, what is staring us in the face can get lost in the noise. What we can see in the weekly chart above is a breakout of the downtrend. We still need to witness a confirmation of the breakout, and this would happen if the current weekly candle stays above the trendline. The next thing to take into consideration in a bullish context is the wonderfully accurate Fibonacci level . The deepest retracement Fibonacci level is the 0.786, and it can be seen that the weekly candles have all stayed above this level, even if the odd candle wick goes below. So we see that the huge rally that rose to the $126,000 all-time high from the bottom of a candle wick in the 8-month bull flag of 2024, has retraced to the exact lowest level of the Fibonacci. Finally, if we look at the RSI at the bottom of the chart, we can see that there is a strong breakout of the descending trendline . If this too is confirmed above at the end of this week, it would appear that this could be the start of the next big rally to the upside. There is the possibility that there could still be an extended period of sideways price action rather than a strong upside surge, but if the bulls manage a decent outcome at the end of this week, the trend back to the upside could start to take shape. 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.
