Bitcoin has been a bit disappointing over the last couple of weeks, dipping down and retracing every time there’s a sense of positive movement.
This is down to its current descending channel, but in the short term, it looks like Bitcoin could be on the verge of breaking out of it.
If it manages to hold onto its ascending channel on the 1-hour charts, then we could see another attempt to break through $11.1k – something we’d all like to see!
Up We Go!
As you can probably tell, we’re moon boys here at Bitcoin Casino Kings, and there’s nothing wrong with it at all.
We love to see the positive and potential in every move – how else do you get through the dark days of the bear markets?
But, finally we’ve spotted a positive sign on the 1-hour charts that could indicate another attempt at $11.1k.
The last couple of attempts have ended in rejection, forcing Bitcoin to slide back down into the lower end of $10K.
This latest ascending channel takes the 5am candle on October 2 and heads up the support of the latest growth.
The top of the channel crosses through data points on September 24, 26, 27, 30 and finally October 1.
If the trend continues and it keeps bouncing off the support line the channel should culminate with $11.1k in a couple of days time.
There is Still a Descending Channel to Battle
Unfortunately, despite this amazing growth in the past few days, Bitcoin is still stuck in its descending channel.
If Bitcoin is to remain in this 1-hour ascending channel, it will break out of the descending channel and everything will be rosy, but it’s a big if.
Bitcoin has been fighting this descending channel since the end of July, meaning it’s becoming more mid-term, so we could see short bursts outside of it, and would need a few closes outside of the channel to consider it over.
So, while we could see Bitcoin break the descending channel temporarily to touch $11.1k, if the level gets rejected, then it will slide right back down into the descending channel, destined for $9k.
With all that being said, we’re still incredibly bullish on Bitcoin for the end of the year.
The weekly charts are still looking promising for our target price range of $19k by January, and unless something major happens then we’re going to stick to our target.
A Good Time to Buy
If you’re looking to get a bang for your buck, now looks like a potentially good time to buy some more Bitcoin.
If the short-term trend remains in place, and you get in at the current price of $10,720, then you could be looking at a nice bit of change if Bitcoin does make it to $11k.
We do recommend placing a stop limit order at $11k so that you can take profits off the table and prepare yourself for the test of $11.1k.
On the other hand, a stop loss around $10,680 could be wise to protect yourself from exasperated losses should the channel fail.