Bitcoin is looking very confident to implement a resistance breakout strategy.
Resistance level: 37900 - 38000.
- A long consolidation is forming
- No deep pullbacks after a false breakout
- Pre-breakout consolidation is formed
- price continues to maximize its approach to the level, which only increases the potential for a breakout.
- strong fundamental background
- global and local bullish trend
- ascending triangle, which can be interpreted as an active price squeeze by buyers (high interest)
From here we can develop two scenarios:
- Scenario 1:
Continuation of consolidation and price approaching the level on the background of reduced volatility. A break of the 38000 level will immediately form a strong impulse. The price could go up very quickly
- Scenario 2:
If the market has not accumulated enough liquidity, the price may go lower, for example to 37476, 0.382 fibo or 0.5 fibo. After that the price will continue to rise to 38000.
A pre-breakout consolidation should form around this level, which will indicate the market's readiness for a breakout.