The cryptocurrency markets are still in the green after a bullish week. The past Monday’s Bitcoin halving event set of a cascade of gradual price increases that made Bitcoin surge. Now, Bitcoin’s price chart suggests it may be nearing one of the most notable price breakouts in over a year.
Could Bitcoin be on the verge of its “most exciting breakout” in over a year?
Specifically, this comes at a time when Bitcoin as trading around $9,700. Furthermore, it remains to see whether Bitcoin manages to open next week, starting May 18th, above $9,200. If this is the case, which currently looks very likely, it will signal a bullish shift.
In fact, opening above the $9,200 price line will mean that Bitcoin’s 46-week long descending price channel would be broken. In particular, this would mean that a broader macro trend since Bitcoin’s high of $14,000 in the summer of 2019 would be broken.
As such, some publications are already labeling this the “most exciting breakout in over a year”, including a recent CoinTelegraph article. As such, it seems exceedingly likely that the Bitcoin price will close over $9,200, barring any major price shifts.
If this is indeed the harbinger of an upcoming price breakout, the effects could be major. Numerous cryptocurrency profiles, analysts and commentators suggest that 2020 could be the “new 2017” for Bitcoin.
Bitcoin could soon leave its 46-week descending price channel
This, of course, refers to Bitcoin’s frantic price rally during late 2017, which saw the crypto reach $20,000. Now, many are bullish on Bitcoin’s prospects following the Bitcoin halving. Moreover, some recent metrics also suggest Bitcoin could soon mirror its 2017 performance.
The previous chart is a graphic representation of the Bitcoin RSI, or Relative Strenght Index. This shows that Bitcoin is currently “overbought”. Although one could interpret this as a bearish signal, the chart shows that Bitcoin was almost constantly overbought in 2017.
It will be extremely interesting to see how Bitcoin continues to perform in the coming week. Although it would arguably be too strong to call the coming weeks a “watershed moment” for the premier crypto, it will nonetheless give an indication of the immediate post-halving sentiment.
We will soon learn whether Bitcoin’s price will rise or fall after the mining reward halving, which analysts are debating. It is certainly possible that this breakout from the 46-week long descending price trend could be the spark that lights the next price rally.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.