The Bitcoin Breakout to Watch For

Bitcoin remains in a tentative uptrend on the Weekly Timeframe. Price is still evolving in an Ascending Channel, with the next target zone approximately $35,000 if the current structure holds.

Price has formed a range between approximately $25,000 and $30,000. Price has oscillated between our Demand and Supply Zones three times, and price is now testing the midpoint of our range.

If we are able to successfully break above the midpoint, our next short-term target is our Supply Zone at $30,000.

If we breakdown instead, and lose $25,000, our next areas of support are between $18,000 and $20,000.

Bitcoin is consolidating directly underneath resistance on the Daily Timeframe.

Our Fast Moving Averages are already trending upwards, indicating a short-term bullish trend. Today, our Slow Moving Average appears to be ticking up as well, potentially giving us the confirmation of a renewed bullish trend.

Price has pin-barred into our Supply Zone twice now, and while I am looking for price to break through resistance, we always need to remain objective and look at the setup that the chart is showing us.

If we fail to hold our current levels and breakdown below $27,200, we will have a short setup targeting the bottom of the range - our Daily Demand Zone.

Therefore, the two setups I am watching for are:

1) The Breakout of $28,000 - enter aggressively.
2) The Breakdown of $27,200 - enter aggressively.

We have a lot of volatility today on the Hourly Chart.

Bitcoin failed to successfully hold above our Hourly Demand Zone - $27,571 - $27,643.

It violently plunged back down into our Range Low and Demand Zone - $27,160 - $27,349.

We've now pumped all the way back up to resistance and are attempting to break it now. Because we've already flushed a lot of Long Interest on that dump down I will be entering aggressively to the long side once we have breakout confirmation.

However, with that same scenario in place, if we reject from resistance now and breakdown below $27,500 - this rally has certainly failed and I'll be aggressively shorting this failed movement.