Bitcoin has made a strong comeback this week, posing a question to crypto traders. Is the bull market finally ready to commence?
It's clearly way too early for anyone to say for sure the pullbacks are finally over. But the charts do offer some clues.
Source: Tradingview.com
Firstly, Bitcoin was never able to perform a weekly price close under the most important technical support zone above $50,000. That's a great sign.
There is also a bonafide double-bottom on the chart, therefore a higher monthly and weekly low has formed.
Source: Tradingview.com
Price stabilization above the monthly pivot this week has also been a great sign that bulls were getting for a push towards $60,000.
Source: Babypips.com
Over the weekend I would suggest paying close to attention to a price close above the former weekly high, around $59,825.
Closing above the former weekly high would be a solid technical sign that bulls mean business and intend to push the price much higher.
Source: Tradingview.com
What about actual buy signals and targets?
The four-hour Williams Alligator shows a strong buy in place while BTC holds $59,300 as does the Ichimoku indicator.
Higher time frames, such as the daily time frame, suggest on both indicators a major buy signal will come only if we continue to see further gains next week.
Source: Tradingview.com
The weekly time frame will be completely transformed if the price starts to get above $63,000. A notable technical area Bitcoin really struggled with in August.
The RSI on the daily time frame also issued its first buy signal since the $65,000 collapse began last month.
Source: Tradingview.com
I'd suggest keeping a close eye on the RSI 50 mark this week if a correction happens.
In terms of bullish targets, I think $63,000 and $64,800 are very strong short-term targets if this move higher above $60,000 is legit.
Source: Tradingview.com
Should Bitcoin start to conquer these areas I would suggest we are in breakout territory based on channel patterns, and $80,000 is very achievable.
The point at which everything completely unravels would be $55,500, and a move under $58,000 would spark a bit of nervousness for me.
Hopefully, we can see a move to $63,000 next week to further give the stamp of legitimacy to the recovery.
